Quebec's unemployment rate hit record lows last November, reaching 5.4%, putting the province in full-employment territory. Behind this good news lie real challenges for Quebec and Canadian companies. Such a low unemployment rate triggers a talent shortage, and Quebec is dangerously close to the point where filling vacant positions becomes impossible. Increasing productivity has become a survival imperative — and the 4.0 shift is the path forward.
A shortage — but why?
The causes of this labor scarcity are many. One that comes to mind first is the wave of mass retirements, anticipated and known for years. "(…) the number of young people reaching working age is lower than the number reaching retirement age: the population aged 15 to 64 has started to shrink." (La Presse) Stopping at this purely demographic cause would mean overlooking other equally important factors. The workforce companies rely on is younger and therefore more likely to take parental leave, which partly explains the talent shortage (Brassard). Recent research has also revealed that workplace stress accounts for 19% of absenteeism costs and 40% of staff turnover costs (Institut universitaire en santé mentale). Rising mental health issues in organizations contribute to turnover and long-term employee absences, sharply increasing workforce needs.
The impact of the shortage on manufacturing
Recent news told the sad but real story of an organization that had to halt production of one of its product lines due to staffing shortages — a first in the food industry, according to the Conseil de la transformation alimentaire du Québec. It's not the only industry facing recruiting challenges. The metal, aerospace, and plastics industries are dealing with the same hurdles. For example, in the Drummondville region, 650 companies are trying to fill 2,000 jobs in the short term. With a situation approaching full employment, you can bet filling those 2,000 jobs will be tough.
The solution: boost manufacturer productivity
The manufacturing sector feels an urgent need to innovate to maintain production capacity. The focus must be on training and on manufacturer productivity — doing more with the resources available today. More with the same, yes — but how? In the Industry 4.0 era, plenty of tools are available to make innovative manufacturers more productive. Worximity's smart factory technologies improve plant productivity at home and abroad. Many manufacturers are already seeing the positive results of their 4.0 shift. Smart factory technologies enable companies to be more productive — and are a solution to the labor shortage.
Learn how to make your plant smart quickly by downloading the IIoT implementation guide.
