No Easy Answers To Local Labour Shortage
SAINT JOHN — Staffing shortages in the food service industry have hit the town of Sussex hard.
Several Sussex restaurants and food businesses have sent out appeals for staffing help in recent months. From Mrs. Dunster’s bakery to The Mule Bar and Grill, McDonald’s, Tim Horton’s, and Pizza Delight.
In September, the push to find staff became too big an obstacle for the Golden Dragon, a Chinese restaurant on Sussex’s Main St., which was forced to close on September 17.
Covid displaced workers
“You’ve got to dial it back to the beginning of the pandemic,” says Paul Bedford, president of the Sussex and District Chamber of Commerce.
“The restaurant industry, in particular, was forced to bear the brunt … to close doors and lay everyone off. Those employees, seeing how volatile things could be, they couldn’t sit at home not collecting a paycheque. So I think those individuals found different lines of work, and that’s why we’re seeing such a void.”
And the statistics back that up.
Restaurants Canada, a national organization focused on the restaurant industry, agrees that labour vacancies continue to cause problems.
In its annual Foodservice Facts report, the organization found that, as of June 2022 “there were 171,715 job vacancies in the foodservice industry, a threefold increase from pre-pandemic levels.”
To attract more employees, many restaurants have started increasing wages, but even that hasn’t been enough in some markets to offset the labour shortage. That’s led to a reduction in hours of operation, as well as owners and managers taking on more tasks to fill in the gaps.
Demographics play a role
“The restaurant industry is the largest employer of youth in Canada,” says Richard Alexander, vice president of Restaurants Canada for Atlantic Canada. “A lot of people get their first start into the workforce in the restaurant industry.”
“We’re an older workforce [in Atlantic Canada], a lot of folks have left to go work in other parts of the country and as a result our demographics make it challenging to deal with the labour shortage and fill those vacancies.”
Alexander says immigration is the best solution to this demographic problem. However, the federal government has been slow to act, with 18-24 month gaps holding up new hires from outside of the country.
David Duplisea of the Saint John Region Chamber of Commerce says that the labour challenges in the hospitality industry are the most visible but that all sectors are feeling the squeeze.
He notes that the end of wage subsidies has an impact on businesses’ ability to hire and retain staff and notes the role that EI plays in people’s decision to participate in the workforce.
A place to live
Bedford sees another contributing factor to the labour shortage.
“We don’t have available housing. We can have all the jobs open here, we can start all the new businesses, but if we don’t have an affordable, reasonable spot for someone to live – why would they come here? That’s a big hurdle to get over.”
Blair Hyslop of Mrs. Dunster’s bakery agrees. The Kings County record reports that Hyslop has bought three houses for his workers to be near the bakery, due in part to lack of availability and also to lack of affordability.
“It’s not just the rental market, there’s not a whole lot in the Sussex area [to buy]. And the stuff that is there is quite high in price because of the way the market inflation went. If you’re coming to a new area, dumping $350,00 – $450,000 on a house, hoping things are going to work out, that’s a big commitment,” Bedford said.
“We’ve got a lot to offer, but we don’t have somewhere for people to set up a home at a reasonable cost.”
Alex Graham is a Huddle reporter in Saint John. Send her your feedback and story ideas: [email protected].