By Ian Holmes

‘It’s a big problem:’ Nanaimo businesses hand-tied by serious labour shortage

Nov 26, 2018 | 5:32 AM

NANAIMO — While the harbour city’s economy is showing positive signs, Nanaimo’s historically low unemployment rate has many local businesses scrambling in an ultra-tight labour market.

Statistics Canada pegged Nanaimo’s jobless rate in October at 3.7 per cent, well below the 7.4 per cent figure a year ago. Most local industries are in dire need of workers, according to John tait, GT Hiring Solutions’ community development coordinator.

Tait said numerous business operators are putting more resources into enticing workers.

“We’ve seen bonuses, we’ve seen things like daycare and a flexible work week, just trying to find ways to attract and keep employees which we wouldn’t have seen before,” Tait told NanaimoNewsNOW.

Tait said the mid-island’s high number of retirees and a strong economy are two key factors driving the labour shortage.

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He said the hospitality, retail, healthcare and most skilled labour positions are the hardest hit by Nanaimo’s shallow talent pool.

“In general I think the economy is brisk,” Tait said. “What’s happening is we’re starting to see wages move up in hospitality and food services.”

However, Tait cautioned as salaries rise, the overall cost of living tends to follow.

Tait said he’s had low paid clients who could no longer afford to live in Nanaimo due to housing costs.

“It could be driving our labour pool in such a way that we might be losing a certain amount of workers, especially the lower paying jobs…it effects the economy and the ability to attract people here,” Tait said.

He said their job posting numbers are up with hundreds of job openings in a range of industries.

The tight labour pool not only impacts Nanaimo, but many other areas of the province and Canada.

B.C.’s jobless rate in October was 4.2 per cent.

A lack of workers in various fields was a highlighted theme discussed at the recent Vancouver Island Economic Alliance summit in Nanaimo.

Greater Nanaimo Chamber of Commerce CEO Kim Smythe said the local labour shortage is a double-edged sword with lots of people working, while many merchants are extremely concerned.

“There is turmoil in the employment market place and you have some capacity issues as we’ve seen in restaurants locally.”

He said numerous Nanaimo restaurants are forced to shut down sporadically and can’t offer a complete menu due to staff shortages.

Smythe said he regularly hears how a thin workforce restricts local businesses from operating effectively.

Mark Sadhra, longtime owner and operator of the Uplands Convenience Store, said they’re having “an extremely difficult time” finding and keeping employees for their family business.

He said new hires typically already have one foot out the door.

“They usually don’t show up on time because they don’t really care since they can find so many other jobs in town,” Sadhra said.

In the past, Sadhra said they usually had several resumes to comb through.

“Not anymore,” he told NanaimoNewsNOW, with a helpless expression on his face.

Amrit Manhas, City of Nanaimo economic development officer, said a collaborative approach is required to address the region’s labour issue.

“It’s important that educational institutions and government agencies work together to come up with short term and long term solutions.”

Manhas said there are government resources available to support skills training, which industry operators may not be aware of.

ian@nanaimonewsnow.com

On Twitter: @reporterholmes