Labor shortage hits hotels and restaurants hard and will get worse

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Economists say jobs in restaurants and hotels are very stressful with long hours, unstable schedules, low wages and sometimes grueling conditions

The Labor Market Group (LMG) June report released today contains bad news for the local tourism industry.

Restaurants and hotels will continue to be among the hardest hit by the labor shortage that is currently causing problems in the business community.

The report says nearly two-thirds of accommodation and food service businesses said they would face labor shortages in the next three months.
– the highest proportion among all other sectors.

“In March 2022, vacancies in this sector increased to 12.8%, the highest rate of any sector for the 11th consecutive month,” it says.

“This sector was also the most likely to see an increase in vacancies over the next three months.”

Economists say jobs in restaurants and hotels are very stressful with long hours, unstable schedules, low wages and sometimes grueling conditions

Industries expecting labor shortages in the next quarter of 2022 include:

  • Accommodation & catering (64%)
  • Construction (45%)
  • Manufacturing (44%)

Statistics Canada conducted the survey from early April to early May 2022. During this period, businesses with more employers were at higher risk of losing employees over the next three months. Based on these results, employees may be required to put in more work hours to overcome barriers at work.

Locally, the report indicates that there were 703 job openings registered for the District of Nipissing in the month of June. This is a slight increase; +9.2%, compared to the previous month’s figure of 644 views and is significantly higher; +47.6% the June five-year average of 476 postings.

“This significant shift is again largely attributed to the change in collection methods for this project. 315 unique employers posted job openings in June; also significantly higher (+43.8%) than the five-year average for June (219) for this variable.

See the full report here.

LMG works with a variety of community stakeholders to develop a better understanding of labor market issues and their impacts, generate awareness of existing workforce trends, and increase the capacity for collaboration and partnerships.

The top five employers posting jobs in the District of Nipissing were:

  • North Bay Regional Health Center
  • Near the Northern District School Board
  • District of Nipissing Social Services Administration Board
  • Traveler Aviation Corp.
  • Land of Northern Ontario
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