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By the Numbers: Labour shortage tied to wages in core sectors

Toronto – July 6, 2022 – According to the latest infographic by Statistics Canada, labour shortage trends can be tied to wages deemed acceptable by workers in the respective industry.

Across retail trade and accommodation and food service – industries experiencing nagging labour shortage trends – the rate offered is stubbornly lower than what workers are willing to accept.

The average hourly wage in accommodation and food service sits at $15.85, while the reservation wage – the minimum hourly wage at which job seekers are willing to accept a position – is closer to $18.85. This reprsents a mismatch of $3.00 per hour.   

In retail trade, the average hourly wage is $17.85, while the average reservation wage is $23.00, a whopping $5.15 per hour undercount on the part of employers.

As the country deals with labour shortages in key sectors, a trend that is driving up costs for businesses and consumers, it is time that employers recognize this shortage on the demand-side and begin raising wage rates to steady supply.

If not, consumers can continue to expect sub-par service, long line ups, and limited options, all the while doling out more for what seems like less.

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United Food and Commercial Workers Union
Canada's private sector union