Paul Martin's Business Update - August 28th, 2014

The tight labor market in this province is a well-documented and much storied affair that sparking innovation among employers who are trying a wide range of things to secure talent. But the situation is also showing some gaps between post-secondary institutions and employers.

Those findings come from a Fraser Institute study of how employers have coped in regions where labor is difficult to find.

One of the most visible developments is overtime. In Saskatchewan, the number of workers receiving overtime pay has risen 60 per cent in the past decade. That’s higher than even Alberta as using existing people more is the simplest solution to labor shortages.

But the study also showed that university grads had more trouble finding work after graduation than those with technical school diplomas. In large measure, the study found that universities are turning out students who lack the skill sets that are currently in demand in fields such as construction where employment growth has been strongest.

And finally, labor shortages and strong demand have seen wages rise faster in the resource provinces – Saskatchewan, Alberta and Newfoundland