Upcoming action plan on labour mobility, First Ministers' Meeting can ‘show small business owners they're serious about eliminating internal trade barriers’
The Canadian Federation of Independent Business (CFIB) is calling on federal, provincial, and territorial governments to remove key barriers to labour mobility, as the Committee on Internal Trade prepares to deliver its action plan by June 1.
“There has been lots of positive talk at all levels of government around breaking down labour mobility barriers in Canada, but we haven't seen all the action needed to support it yet,” said SeoRhin Yoo, CFIB’s senior policy analyst.
“The June 1 deadline to deliver an action plan on labour mobility, as well as the First Ministers' Meeting on June 2, are opportunities for Premiers and the Prime Minister to show Canadian small business owners that they're serious about eliminating internal trade barriers.”
In a new report, CFIB highlights how inconsistent licensing standards and workers’ compensation registration rules across jurisdictions are restricting small businesses’ ability to recruit, relocate, and retain skilled employees.
Among small businesses that have hired or employed workers in different jurisdictions, 49% report facing challenges. CFIB identifies the most common issues as the lack of recognition of certifications, the need to acquire new provincial licences, adjusting to Occupational Health and Safety requirements, and registering employees in workers’ compensation systems outside their home province or territory.
CFIB also outlines several real-world cases illustrating how current regulations obstruct worker mobility:
“We’re hearing from businesses that navigating WCB systems is time-consuming and that differing provincial regulations make it hard to operate and expand across Canada,” said Bradlee Whidden, CFIB’s senior policy analyst.
“We need policies that would open doors for workers and allow businesses to better recruit and retain employees. Workers would be able to move to areas where their skills are in higher demand, while businesses would be able to fill vacancies more quickly, boosting Canada’s economy and productivity while addressing unemployment. That can be done without compromising public safety, but we need political will and governments working together.”
Earlier this year, the CFIB called on the federal government to provide support for SMBs caught in the crossfire of the Canada-U.S. trade war.
CFIB’s 2024 State of Internal Trade report card evaluates how federal, provincial, and territorial governments are addressing internal trade and labour mobility barriers. The report assesses Canadian Free Trade Agreement (CFTA) exceptions, the presence of inter-jurisdictional barriers, and the implementation of reconciliation agreements.
This year’s top-performing jurisdictions were Manitoba, with an overall score of 8.7 (A-), and Alberta at 8.6 (B+). However, no province or territory received a full A grade, indicating that further work is needed to harmonise standards and improve interprovincial cooperation.
The report also introduces a new bonus indicator to recognise jurisdictions that have demonstrated proactive leadership on related issues not fully captured by the primary criteria.
Recently, Ontario and Manitoba signed a Memorandum of Understanding (MOU) to support the removal of interprovincial trade barriers between the two provinces. Earlier, Nova Scotia introduced the Free Trade and Mobility within Canada Act which, the provincial government said, will help remove barriers to trade and investment between the province and other Canadian provinces and territories that reciprocate.
