Wednesday, November 15, 2006

Why there is a worker shortage in Nova Scotia

I am tired listening to employers whinge about how they can't get workers. I really am.
Serious rant alert boys and girls...

There is a growing workers shortage in the province of Nova Scotia. In order to solve this problem we must admit to ourselves exactly why there is a growing shortage.

There is a shortage primarily because there aren't enough people to work in the Halifax Regional Municipality, where most of the jobs are. You might think this is a no-brainer, but in Poland for example, they have an 18% unemployment rate and a shortage of workers. So it is important to make this distinction. Demographic shifts, an ageing workforce, a baby boomer generation who have good pensions and can retire early, and a massive drop in births are the big drivers of this.

I say primarily because there are two other reasons why there are worker shortages.

In some parts of Nova Scotia (Cape Breton, South West Nova) there are high-ish levels of unemployment side by side with worker shortages. In this situation, the government's labour market policy has failed to shift workers from a declining sector (usually primary production or traditional manufacturing) into a developing sector (usually business services or health services). Alternatively, labour market policies have failed because they didn't make it easy for unemployed people to enter the workforce, take up a trade, for example, or to learn IT skills when it became clear that there would be a shortage of these workers.

In some sectors of Nova Scotia (mostly health) there are shortages because there is no one with the available specialist skills and it takes a lot of time and money to create these workers. Tomes have been written about the shortage of health workers in the developed world and there is no consensus apart from the fact that you get what you pay for.

Basically, it is not just demographics. A lot of this is the government's fault. They should have prepared for this.

Now that it's happening, the first thing we need to do is find out what shortages are there exactly, in what sectors, how many and for how long (if there will be too many nurses in three years, then there's no need to panic is there)?

Do what the Paddies did. Set up an Expert Group on Future Skill Needs. Get business, labour, post-secondary and labour market people involved. Make them responsible for their own recommendations. Do separate reports on key sectors - healthcare, trades, ICT transport.

Identify the shortages, identify the reasons for the shortages, identify the ways in which we can eliminate those blockages, identify the future workers, identify how we will train them and when they will be ready. They can be immigrants, or unemployed people brought back to work, or Nova Scotians lured home, or young people coming up, or women, or Mi'k Maq or African Nova Scotians who have been ignored until now or whoever.

Leave no stone unturned.

The next thing we need to understand is why people are leaving. So we can staunch the bleed. All the people I know who left for Alberta did so because they were tired of scratching a living on Nova Scotian wages, paying Nova Scotian taxes and paying off huge Nova Scotian student loans. They would rather live here (where their wives, children, families are) but they can't afford to.

Rant alert

The middle class in this province has its head in the sand about poverty. If you make $60k here and you're in a dual income household you have a pretty good standard of living - two cars, cottage, meals out, bottles of wine, etc with few of the strains of big city life. Why is that? This nice lifestyle is on the back of people who get paid crappy wages to deliver services to you. That's why they're so cheap. This has not sunk in with most people. Europeans take it for granted that in order to have social stability and low levels of poverty, you must have good service wages and a high cost of living.

Extreme rant alert

Here, poverty is an opportunity to show how generous you are. I have never, ever, ever in my life encountered a place where you have to buy a lorry-load of tinned food at the start of the Christmas party scene and pop one or two Campbell's Soup cans into your velvet purse every time you go out. Why? Every social occasion in Nova Scotia is used to collect food for the Food Bank.

I'd rather pay more tax, really I would.

I feel like Mr Bumble in Oliver Twist. It's off to the poor house with you me lad!!

- Pharmacy assistant - $8 an hour x 40 = $320 per week
- Call centre person - $11 an hour x 40 = $440 per week
- Labourer - $10 an hour x 60 = $600 per week
- Truck driver - $15 an hour x 90 = $1,350 per week

Crappy work environment examples:

- A friend recently told me that she earns $10k less in Alberta than she did in Nova Scotia and she still comes out $5 richer on a pay packet.

- Overtime starts in this province after 48 hours. It's worse in the construction sector.

- OHS standards in the construction sector are the worst in Canada. More people die at work here than anywhere else.

- They've just started discussing whether to have legislated lunch breaks here. I kid you not. Even the queen of white collar herself - i.e. moi - rarely gets one.

Enough said.

Okay, back to demographics - a key issue, but one that occurs in other provinces and in other countries. They solve that with immigration. Atlantic Canada's immigration policies have failed for a number of years and very little has been done to redress that. People talk about the need for more immigration. This is true, and we need to develop innovative immigration policies but we also need to look at why there are so few immigrants, apart from the fact that we are not made feel very welcome in AC.

Let's see:

- It's really difficult to get a well-paid job here if you are a graduate.

- Most immigrants to Canada are graduates.

- Immigrants are not prepared to work for $7 - 15 an hour while paying off heavy student debt loads any more than Nova Scotians are.

The business community, having lost the opportunity to lord it over average joe Nova Scotians with crappy jobs, terrible labour standards and mediaeval human resource practices, are now grasping at immigration as a straw.

They have missed the point completely.

Instead of asking themselves - why are all our former workers sitting homesick in Fort McMurray (or Fort McMoney as it's called now), working long hours in terrible weather in a polluted atmosphere, paying exorbitant rents for crappy trailers, when they could be home with their families - they are now thinking, ahaa, we'll get immigrants to come over and fill these spots. Sure they'll be delighted to be let into this great friendly little province.

- Immigrants are not stupid.

They will wonder where all the young people are. And then they will find out and why and move to join them. Because you don't move yourself and your family halfway across the world for $10 an hour.

Yes, in the long term we need better immigration levels, but it's going to take years to convince people to come and settle here, particularly as many young people are leaving. What we need is flexible, innovative migrant worker policies for key sectors. Both skilled and unskilled.

Lots of people would come to work here for a year if it were possible. Then they might possibly like the place and ask to stay for longer. Of course, you would have to attract these people with good wages and resettlement packages and have a govt unit that works with employers to ensure they can drive, get car insurance or health insurance, a credit card, a health card, etc - all the things that are an incredible hassle to organise if you are a migrant worker at the moment.

Extremely extreme rant alert

The government spends all its time advertising Nova Scotia as a place to live to the people who already live here. See www.novascotialife.com for an hilarious look at how important Nova Scotian media analysts think Nova Scotia is.

They should maybe think about advertising it to people who think Halifax is a place in England with a crappy football team and don't realise that it's actually the centre of the universe and the best little city in the world etc. Most people in the world don't know where Halifax is.

I know that's a terribly shocking thing to say but I know my geography and this time two years ago I didn't know where Halifax was. Never mind Pictou County.

So I should wrap up this rant. What I'm trying to say is that there is a reason why this is happening, that is cultural, that is much deeper than ageing population or not enough immigrants. This cultural identity, which is 'I'm alright Jack, so it must be your fault if you're not getting on' fits quite nicely with right wing ideology. It is rampant in Nova Scotia. People have had enough and are leaving in droves. Immigrants are not settling here because it is anathema to them.

Yeah, immigration, training, improved access to education and interesting labour market interventions are exactly how we should solve this problem. They should have a conversation about why they're in this mess sometime too.

We could have a potluck. Talk it over. Don't forget to bring a can for the food bank with you though, or we'll think less of you!!

5 comments:

Anonymous said...

And I was just thinking that I missed your blogs:)

Queenie for President!

-Jena

Ray said...

I know where Halifax is!

Actually, I don't. Is it anywhere near New Brunswick?

Queenie said...

Nova Scotia is next to New Brunswick. Nova Scotians (Bluenosers) look down on New Brunswickers as they are even more trampled upon by the forces of capitalism (ie the Irving family). So actually, New Brunswick is near Halifax, not the other way round.

Ray said...

The Company have an office in New Brunswick. We like to imagine that they all have dogsleds to pull them through the snow to work.

Anonymous said...

So right. I moved from Nova Scotia to Alberta simply for money. The taxes are way less here, the pay is way higher, and the rent is the same. No contest there. But what is not the same?
The people. I miss NS but cannot afford to move back yet. But I will. After I take Alberta's money :-)

C'mon Nova Scotia! Time to start paying some decent wages and cut the ridiculous tax rate!