Nearly half of small businesses hiring from other provinces encounter regulatory obstacles that slow recruitment and expansion, according to new research released as governments approach a key deadline for labour mobility reforms.
The Canadian Federation of Independent Business found 49 per cent of small businesses that have hired workers from other jurisdictions face challenges including lack of certification recognition, complex provincial licensing requirements, and workers’ compensation registration hurdles.
The findings come as the Committee on Internal Trade faces a June 1 deadline to deliver an action plan on labour mobility, followed by a First Ministers’ Meeting on June 2.
Regulatory maze slows business growth
“There has been lots of positive talk at all levels of government around breaking down labour mobility barriers in Canada, but we haven’t seen all the action needed to support it yet,” said SeoRhin Yoo, CFIB’s senior policy analyst.
The organization’s snapshot identifies several barriers that prevent workers from moving between provinces for employment. A nurse registered in Ontario must still register with Quebec’s college before starting work there. A Red Seal-certified stylist from Newfoundland and Labrador cannot legally use professional titles in New Brunswick without obtaining a separate licence from the Cosmetology Association of New Brunswick, paying $340 and waiting up to 30 days for processing.
Podiatrists from Saskatchewan, Manitoba, Ontario and Northwest Territories must complete additional training before they can register and practice fully in Alberta.
Workers’ compensation creates administrative burden
Small businesses report that navigating workers’ compensation board systems across provinces is particularly time-consuming. The regulatory differences make it harder for companies to operate and expand across Canada.
“We’re hearing from businesses that navigating WCB systems is time-consuming and that differing provincial regulations make it hard to operate and expand across Canada,” said Bradlee Whidden, CFIB’s senior policy analyst. “We need policies that would open doors for workers and allow businesses to better recruit and retain employees.”
Economic benefits of reform
CFIB argues that streamlined labour mobility would allow workers to move to areas where their skills are in higher demand while helping businesses fill vacancies more quickly. This would boost Canada’s economy and productivity while addressing unemployment, the organization said.
“Workers would be able to move to areas where their skills are in higher demand, while businesses would be able to fill vacancies more quickly, boosting Canada’s economy and productivity while addressing unemployment,” Whidden said. “That can be done without compromising public safety, but we need political will and governments working together.”
The federation is calling on governments to minimize exceptions to mobility agreements, streamline certification processes, mutually recognize equivalent qualifications, and make it easier and quicker for employees to start working in other jurisdictions.
Political pressure mounts
The June 1 deadline and subsequent First Ministers’ Meeting represent key opportunities for political leaders to demonstrate commitment to eliminating internal trade barriers, CFIB said.
“The June 1 deadline to deliver an action plan on labour mobility, as well as the First Ministers’ Meeting on June 2 are opportunities for Premiers and the Prime Minister to show Canadian small business owners that they’re serious about eliminating internal trade barriers,” Yoo said.
The Canadian Federation of Independent Business represents 100,000 small and medium-sized businesses across every industry and region in Canada.
