Labour Force Challenges for Rural Businesses in Technology Use

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Labour Force Challenges for Rural Businesses in
Technology Use

• Rural Matters Conference
• October 2002

Lucie Charron, Policy Analyst NB PEI Canadian
Federation of Independent Business (CFIB)
www.cfib.ca
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Overview

• About the CFIB
• Role of small- and medium- sized enterprises
  (SMEs) in New Brunswick
• Labour force challenges
• Technology use among SMEs
• Labour force challenges related to technology use

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About the CFIB

• CFIB IS A BIG VOICE FOR SMALL BUSINESS
  EVERYWHERE.
• CFIB represents more than 100,000
  small-and-medium sized independent businesses
  across the country.
• In New Brunswick CFIB has over 4,500 members.
• CFIB represents members interests in all sectors
  of the economy at all levels of government.
• Through surveys our members shape CFIB's policy
  positions.
• CFIB does not accept funding from governments or
  large organizations.

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Role of SMEs in New Brunswick
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SMEs Predominate in NB

• Almost three quarters (71.9) of New Brunswicks
  businesses employ fewer than 5 people

Source Statistics Canada, 1983-1998 Employment
Dynamics, NB Data, (2001)
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NB Rural Areas
Source Statistics Canada, Census 2001
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SMEs employ more than half of the New Brunswick
labour force

• SourceStatistics Canada, 1983-1998 Employment
  Dynamics, NB Data (2001)

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Employment Share of SMEs increasing in NB

• Since 1996, the SMEs employment share has
  followed an upward trend.

Source Statistics Canada, 1983-1998 Employment
Dynamics , NB Data (2001)
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Summary

• The small business sector creates most of the new
  jobs in the NB economy.
• Our economy is largely dependent on small- and
  medium-sized businesses.

Source Statistics Canada, 1983-1998 Employment
Dynamics, NB Data, (2001)
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Labour Force Challenges
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Labour Force Challenges

• Keeping or retraining valued employees
• Recruiting new employees with the skills needed
• Low educational attainment
• Training and skills development
• Aging population

Source Thompson-James, Statistics Canada, 2002
and CFIB
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Labour Force Challenges Unique to Rural Areas

• Out-migration of youth
• Lower population
• Low educational attainment
• High unemployment
• Seasonal employment
• Distance to educational institutions

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Technology Use Among SMEs
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CFIB asked Does your Business use the
Internet?
Source CFIB OMO Survey No. 50- Aggregate
results, NB Data, Jan-June 2002, 1st quarter,
343 responses
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CFIB asked Does your Business use the
Internet? of Respondents who said Yes
Source CFIB OMO survey 50, NB Data, Aggregate
Results, Jan-March 2002
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CFIB asked How much of a benefit has the
Internet been to your business ?
Source CFIB OMO Survey 48, NB Data, Aggregate
Results, Jan.-June 2001, 1057 responses
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CFIB Asked How often do you use the Internet
for business purposes?
Source CFIB OMO Survey 49, NBData, Aggregate
Results, January 2002, 1089 responses
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Types of Internet Usage Among NB SMEs
Source CFIB OMO survey 47 and 50, NB Data,
2000-2002
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Evolution of Technology Use Among SMEs
Source CFIB OMO Survey 39-51, NB Data, 1997-2002
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Labour Force Challenges Related to Technology Use
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Labour Force Challenges for Rural Businesses
Related to Technology Use

• Access to technology
• Costs of technology in rural areas
• Education level
• Age of users
• Language

Source MCLaren, Statistics Canada, 2002
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Labour Force Challenges related to Technology Use

• Smaller firms have fewer financial means
• More costly for smaller firms to introduce new
  technologies
• Technology can be implemented in a graduated
  fashion in only a limited number of cases
• Shortage of qualified labour

Source The path to prosperity, CFIB, October 2002
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Most Prominent Labour Force Challenge Among CFIB
Members

• Shortage of Qualified Labour

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A Serious Concern
Source CFIB Small Business Primer 2002, NB Data,
January 2002
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CFIB Help Wanted Index

• Indicates labour shortages persist in the SME
  sector.
• In New Brunswick, an estimated 15,000 jobs vacant
  due to a lack of qualified labour.
• Labour shortages exist within the full range of
  skill sets.
• Labour shortages are a serious sign of unrealized
  economic potential.

Source CFIB Help Wanted Update, National Data,
April 2002, 11,253 responses.
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Conclusion

• CFIB recommends that businesses, educators and
  governments at all levels strive to do further
  work in the following areas

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Conclusion

• Align federal-provincial training programs and
  services for more effective delivery.
• Adjust the immigration system to be used more
  effectively as a source of skilled labour.
• Facilitate greater communication among small
  employers and educators at all levels.
• Reduce the tax burden on job creation so that
  more employers resources can be devoted to wages
  and in-business training.