Energy projects will pump labour pool dry: study
OTTAWA - Saint John and the entire province will run out of workers as the economy expands thanks to megaprojects, a new study concludes.
As in Alberta, employers in New Brunswick are going to have to use temporary foreign workers to fill vacancies in skilled trades and professions, says the Benefits Blueprint.
Economic growth pushed by energy, industrial and infrastructure projects means "both Saint John and the province of New Brunswick as a whole will experience significant labour shortages," says a chapter on global labour trends.
That new study, funded by the provincial and federal governments and Irving Oil, was commissioned to prepare the province for an estimated $44 billion in economic growth largely stemming from investments in six major energy projects, including a proposed second nuclear reactor and second oil refinery near Saint John.
The study says the most viable places from which employers and the province can attract energy workers are the United States, western Europe, Mexico, Venezuela, Philippines, Saudi Arabia and the other Gulf states, India and eastern Europe.
Saint John's projects are occurring during a period of fierce worldwide competition for workers in the energy sector.
Worldwide energy consumption and production are forecast to increase even as older workers retire, particularly in developed countries.
The effects are already being felt in Canada: a 2007 survey of the sector by Deloitte and Touche found 80 per cent of companies are facing limited productivity and efficiency due to labour shortages.
"All of the research points to the need for an expansion and renewal of the labour force in New Brunswick, particularly in the trades and construction industry," says the study.
It lists the jobs that will be in greatest demand.
In the trades, the list of 14 positions is topped by pipe fitters and welders, electricians, instrumentation technicians, heavy equipment operators and truck drivers.
In the professions, the list of 11 fields is topped by civil, mechanical and industrial engineers, inspectors for welding and safety and other needs, and geotechnical specialists.
The positions were identified in interviews with the energy companies that will be leading the Saint John projects.
Other interviews, with human resources experts in Alberta, showed hiring for these positions will be very competitive, particularly in the trades and civil engineering.
The main factors in Saint John and New Brunswick contributing to the labour shortage are the overall aging of the workforce and retirement of baby boomers; outmigration of workers, especially to western Canada; a lack of migration and immigration to the region and the lower participation of women in the workforce.
Alberta's demand for workers is forecast to stay high through and beyond the peak of construction of the Saint John's projects.
Alberta also has the advantages of no provincial sales tax, lower income tax and substantially higher wages, the study notes.
B.C., the other Maritime provinces and Ontario will also be significant competitors for workers.
As well, New Brunswick faces an uphill battle competing with other provinces for foreign labour.
Alberta already employs 20,000 foreign workers, while New Brunswick is a "minor market" for immigrants and temporary foreign workers.
New Brunswick will be competing for workers against employers in Texas, the North Sea, the Gulf of Mexico and the Mideast, says the study.
"Based on these trends, there is an urgent need for Saint John and New Brunswick energy companies to evaluate and update their approach to recruiting people," it says.
Their efforts should include developing plans to retain temporary foreign workers, the study states.
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