08:04 AM EDT, 06/10/2025 (MT Newswires) -- Canadian small businesses face a shortage of applicants, skills mismatches and difficulty attracting candidates when hiring skilled workers, and these challenges are only worsened by labor mobility barriers, finds recent analysis by the Canadian Federation of Independent Business.

"Over four in ten small firms say a shortage of skilled labour is limiting their ability to increase sales or production. Many are struggling not just to find workers, but to find candidates with the right skills, expectations, and qualifications," said Marvin Cruz, CFIB's director of research, in a note published Tuesday.

Over two-thirds (69%) of small- and medium-sized companies said the primary obstacle to recruiting skilled employees is a shortage of qualified candidates within their sectors. More than half (54%) of small businesses had issues attracting qualified candidates at all, while 47% said they struggled with a mismatch between the skills applicants bring and the actual requirements of the role, accoring to CFIB.

Even when qualified workers are available elsewhere in Canada, provincial licensing and certification barriers often prevent employers from filling essential roles quickly and efficiently-especially in rural areas or sectors where candidates are scarce.

Additionally, 57% of small businesses reported a disconnect between what candidates expect in terms of pay or benefits and what the business is offering, and half of small businesses said they simply cannot provide compensation packages that match those of large companies.