Half of the small to medium-sized businesses in Atlantic Canada have trouble finding the employees they need, says a new study released by the Business Development Bank of Canada.

The national study found that half of the SME owners the bank surveyed in the region said they had trouble finding new employees. That means Atlantic Canada has the highest labour shortage in the country as the survey found that across the country 39 percent of respondents reported difficulty finding staff.

“The problem is slowing down growth,” Pierre Cléroux, BDC’s Chief Economist, said in an email.  “Most entrepreneurs think the problem will last a few months but labour shortages are here to stay for at least a decade.”

The bank added that companies affected by labour shortages are 65 percent more likely to generate low sales than those that can find the staff they need.

The bank, a federal Crown corporation that finances businesses, surveyed 1,208 entrepreneurs. It found that, after Atlantic Canada, the most severe labour shortages are in British Columbia (where 45 percent of respondents reported problems) and Ontario (40 percent). The hardest-hit sectors are manufacturing, retail, trade and construction.

The bank encouraged business owners to look more to immigrants to meet their staffing needs. According to Statistics Canada data, immigrants will account for about two-thirds of Canada’s population growth in 2022 and up to 80% by 2032. Yet, only 18 percent of Canadian entrepreneurs report looking to immigrant workers to fill their needs for skilled employees, said the BDC.

It also called on entrepreneurs to implement strong HR policies to put their business on a more solid footing. Strong HR policies facilitate hiring, improve retention and reduce legal and reputational risks, among other benefits. Its research shows that companies with strong HR policies have stronger sales growth than their peers.