Julie Gordon, Steve Scherer

OTTAWA, (Reuters) – Canada’s labor market is tight. Many companies are offering regular COVID-19 tests over mandated vaccines. Others reverse previously announced inoculation requirements as Omicron variants rise.

Justin Trudeau is the Canadian prime minister. His government has implemented one of the strongest inoculation policies for civil servants in the country and already had more than 1,000 employees on unpaid leave.

Airlines, police forces, school boards and even Canada’s Big Five banks https://www.reuters.com/world/americas/canadas-major-banks-require-employees-entering-premises-be-vaccinated-2021-08-20 have also pledged strict mandatory vaccine policies. It has not been easy to keep this promise, particularly as workers and employers face staff shortages.

According to official data, Canada’s job vacancies increased by two-thirds this year. The vaccine mandates may make filling these jobs more challenging, potentially increasing wages. That could fuel inflation https://www.reuters.com/world/americas/canadas-annual-inflation-rate-hits-47-oct-highest-since-feb-2003-2021-11-17, already running at a near two-decade high.

“It is already hard to find people, let alone put in a mandate for vaccines. Dan Kelly (chief executive of Canadian Federation of Independent Business) stated, “You’d eliminate possibly another 20%” of possible workers.

Employing unvaccinated workers can pose a risk. According to marketing professionals and industry experts, companies are at greater risk for COVID-19-related outbreaks. Additionally, many employees who have been vaccinated will not be comfortable sharing their work with others.

Robert Eiser, the president of Luda Foods in Montreal, said that he currently has 14 jobs available, but there is no mandate for vaccines and no plans to limit new employees to those who are vaccinated.

Eiser said, “I don’t know that it is my intention to decrease the labor pool. It is already very low.” We need to recruit people to fill the demand. We will be outsold by our competition if we do not.

Data released on Friday underpinned Canada’s tight labor market, with a hefty 153,700 jobs https://www.reuters.com/markets/us/canada-posts-hefty-job-gains-outlook-clouded-by-omicron-variant-2021-12-03 added in November. The data also revealed a rising mismatch between unfilled and available jobs. Postings for job are at an all-time high, even above the pre-pandemic level. (Graphic: Canada job postings surge above pre-pandemic level Canada job postings surge above pre-pandemic level, https://graphics.reuters.com/HEALTH-CORONAVIRUS/CANADA2/klvyknzklvg/chart.png)

WALKING BACK

Quebec reversed its decision to halt a mandate for vaccines in healthcare last month. They said they couldn’t afford to lose thousands more unvaccinated workers. Ontario also opposed a mandate.

Bank of Montreal and Toronto-Dominion Bank have relaxed their vaccination policies to permit regular testing of workers who miss their Oct. 31 deadline.

Canada’s adult population is 86%. This drops below 80% in the 18-40 age group. At least 15 cases of the new Omicron https://www.reuters.com/markets/rates-bonds/canada-has-reported-total-11-cases-omicron-variant-health-official-2021-12-03 variant in Canada have been reported in the past week.

John Cappelli Vice President of Onsite Managed Services in Canada, Global Recruitment Firm Adecco (SIX) He said that half his clients require vaccines, while the other half allow regular testing of the unvaccinated.

However, he believes the Omicron variation will cause more workplaces and employers to become stricter about vaccines as they struggle with the tightest employment market in their 25-year careers.

He said, “We’re now seeing our first COVID-19 cases at work in just five months.”

In August, there were four times as many Canadian job posts on Indeed that mentioned vaccine requirements. (Graphic: Canada job postings and vaccine mandates, https://graphics.reuters.com/HEALTH-CORONAVIRUS/CANADA3/byvrjqrlmve/chart.png)

Vacinations mandates are rarer in the manufacturing industry, which is currently struggling. 77% of companies say that their main concern is to attract and retain workers.

Dennis Darby is the CEO of Canadian Manufacturers and Exporters. He said that most Canadian factories were able to continue operating safely during the epidemic. CME strongly encourages vaccination. However, he noted that “some companies continue to use rapid testing for people who don’t want to get vaccinated.”

According to Wojtek Dbrowski, managing partner of Provident Communications, companies can risk their reputation by being too open in trying to access the unvaccinated labor pool.

Dabrowski said, “If we go out and tell people that we are intently seeking to employ unvaccinated individuals, then many customers would think that you’re anti-science or anti safety.”