Worker shortage or shift in work? Hamilton businesses struggle to hire, retain staff during pandemic

For the last while, Bettina Schormann has closed the James Street restaurant she co-owns one day a week.

Not because the demand isn't there at Earth to Table Bread Bar, but because her overworked staff need a break.

During the fourth wave of the pandemic, Schormann, like others, has been experiencing a worker shortage, even with a raise for new hires working in the kitchen.

Between potential employees not showing up for interviews or new hires quitting after one shift, it's been hard on the business, she said.

There's usually a stack of resumes to pull from, and now we don't have that," she said.

The new buzzword during the pandemic seems to be worker shortage."

For the hospitality industry, the shortage looks like a lack of employees applying for positions or folks switching industries completely.

In Hamilton, some businesses closed their doors - both temporarily and for good - citing this shortage as at least one reason behind the decision.

Last month, Suzanne Keast, co-owner of the now-closed Cat N' Fiddle Pub, was struggling to hire new staff in preparation for a busy fall season.

With some potential employees not showing up for their scheduled interviews, it was frustrating," she told The Spectator.

At the time, she said she didn't expect the labour shortage to improve any time soon, and other businesses are now reporting the same issues.

Hamilton Meat Pie Co. said in an email to The Spectator that it has temporarily closed its Westdale location due to staffing shortages.

According to a recent report from the Business Development Bank of Canada, 61 per cent of employers had to increase their own hours or their employees' hours as a result of the labour shortage. In addition, 49 per cent of business owners have had to postpone or have been unable to deliver orders.

The question is: Should this trend be defined as a worker shortage, or is it something else?

Viktor Cicman, the senior consultant of projects and data at Workforce Planning Hamilton, isn't too quick to jump on the worker shortage" explanation for what is happening in the labour market. It's a bit more complicated," he said.

A worker shortage is typically defined as a situation where there are low unemployment rates and no one to fill open positions, Cicman said, and that isn't what's happening here. It seems instead of a worker shortage, Hamilton is seeing more of a work shift.

The most hard-hit industries are those not categorized as high skill," he said, including manufacturing, warehousing and transportation. On the other hand, high-skill job sectors are actually growing in the city, like scientific and technical services, programming, finance and insurance.

Part of the problem is employers aren't necessarily enticing folks to return to the workforce with higher wages, benefits, child care and growth opportunities, he said.

Without these perks, workers may decide it's not worth it and look to higher-paying industries or use this time to re-skill, Cicman said.

What isn't a factor causing the so-called labour shortage is federal government support, he said, referencing the Canada Recovery Benefit, which is set to expire before the end of October. We're still in a pandemic and these supports are needed. They're almost public safety measures," said Cicman.

When you do the math, the support given is less than minimum wage, he added.

The president of the Hamilton and District Labour Council, Anthony Marco, echoed some of Cicman's reasoning for the shortage, citing a problem with minimum wage, a shift in jobs needed during the pandemic and safety concerns around front-line positions.

For hospitality workers, it can be fear of violence, verbal assault and abuse for asking folks to show their proof-of-vaccination certificates, said Marco. Workers just don't want to face that."

Marco said workers may also wish to leave minimum-wage jobs to look for better employment, especially when minimum wage doesn't match up with the cost of living in the city.

The Hamilton and District Labour Council is calling for a $16.45 per hour living wage, but also notes $19 is more representative of the cost of living in the city. Ontario's minimum wage, in comparison, is $14.35 per hour.

And it's evident that workers can be enticed with higher pay, even if that means working remotely for a company abroad.

Keanin Loomis, the president and CEO of the Hamilton Chamber of Commerce, said some local talent is being scooped up by American- or Toronto-based companies, especially with architects and folks in the legal industry, as the pandemic has changed attitudes around remote work.

A slowed immigration system may also be to blame, said Loomis. We're certainly not letting in as many people as we used to (pre-pandemic)," and those folks could help fill in the gaps.

- With files from The Canadian PressAlessia Passafiume is an intern reporter with The Spectator. Reach her via email: apassafiume@thespec.com