Tackling Canada’s skills shortages and leveraging immigration’s pivotal role in filling workforce gaps will require concerted efforts from small and midsize enterprises and the organizations that serve them, according to a report from The Conference Board of Canada released Aug. 14.

Skills shortages are the primary employment challenge for SMEs across fast-growing Canadian cities, and the labor shortage is due to a scarcity of candidates with the requisite skills and not a lack of applicants, the report found.

Among the skills prioritized by SMEs is English and French proficiency, but some immigrants struggle to develop the required language proficiency due to limited access to language classes. This is compounded by the tendency of SMEs to overlook language as a learnable on-the-job skill.

“While Canada relies heavily on immigration to address labor and skills shortages, newcomers often encounter significant barriers to entering the labor market,” Stefan Fournier, executive director of The Conference Board of Canada, said in a press release. “To effectively unlock the full potential of the immigrant talent pool and address these shortages, SMEs must proactively work to dismantle these barriers.”

The study also found that complicated immigration systems dissuade SMEs from turning to immigration to meet labor needs.

Negative experiences with immigration programs, including ambiguity about the processes and outcomes, underscore the need for collaboration between SMEs and the organizations serving them to improve access to information about immigration procedures and enhance their ability to navigate the system effectively, according to the report.

While SMEs have adopted inclusive hiring practices, the study noted these initiatives lack inclusive recruitment and onboarding strategies, further impeding employment opportunities for immigrants. Engaging with immigrant-serving organizations can help facilitate the attraction, retention and successful integration of immigrant talent into local labor markets.

Additional challenges in the labor market include affordable housing, public transit and accessible childcare. While businesses may not directly address the infrastructure challenges of small and midsize cities, the study suggests adapting workplace policies to accommodate transit accessibility and childcare responsibilities could alleviate these obstacles.