Aresearch initiative at the University of Guelph (Ontario) called “Addressing Labor Shortages Through Newcomer Attraction” is largely complete, according to its director, Ryan Gibson, PhD, associate professor, Rural Planning & Development, and Libro Professor in Regional Economic Development at the university. It focuses on the three main sources of human capital: newcomers from urban settings, immigrant newcomers and temporary migrants. It identifies innovative solutions to attract, retain and welcome newcomers to enable rural businesses to meet their employment requirements.
The research is based on a survey of regional respondents from workforce planning boards and Community Futures Development Corporations representing rural communities, mainly in southern Ontario.
The greatest difficulties rural businesses have in attracting workers, according to the survey, are affordable housing (75%), worker retention and transportation (71% each), attracting workers to the community (64%), cost of living (54%), wage and benefits expectations (46%) and immigration policies (36%). For more on the research, visit ruraldev.ca/lsna/.
“I was surprised by the diversity of actors that are leading workforce development initiatives,” says Gibson. “It was more diverse than I was anticipating in terms of the private sector being engaged, as were local governments and regional economic development organizations, be they community-based or regional. The academic sector, too, was involved — colleges, universities and other training opportunities. Academic literature usually suggests that it’s government that does that or businesses, and never should the two interweave.”
Ryan Gibson, PhD, Associate Professor, Rural Planning & Development, and Libro Professor in Regional Economic Development at the University of Guelph
Bigger-Picture Considerations
“Truly innovative initiatives involve multiple stakeholders,” Gibson argues. “Whether it’s a capital ‘P’ partnership or an informal partnership, there is engagement around these initiatives because they recognize that attracting workers is not just money or the job. It’s related to housing and health care and recreation amenities and other resources in communities. Simply having the job and a great paycheck isn’t enough to bring people in and keep them.”
One survey question asked what has changed in recruiting workers since the pandemic. Several industries have had more difficulty than others, including education, finance and insurance, hospitality and food service, retail trade, construction and utilities.
“Recruiters in these industries are in a new reality,” says Gibson. “This means they have to look at this challenge from a new perspective. Different factors are influencing how workers are being attracted and retained, including expectations around remote working. Solutions can’t be cookie-cutter in nature because industries are affected in different ways.”
Rural communities can make it harder for workers to advance their careers in some industries, notes Gibson. In government and education, for example, “Rural areas can represent a plateau,” he says. “To get beyond that plateau, it may mean relocating outside that area. Then the challenge becomes how to get those people back once they have their credentials.”
Castlegar and Kootenay River in Monashee Mountains.
Photo Courtesy of Getty Images/JosefHanus
Bridging the Labor Gap
A CASE STUDY OF WEST KOOTENAY’S RURAL AND NORTHERN IMMIGRATION PILOT,
October 2025
By Heather Douglas and Ryan Gibson, University of Guelph
The Rural and Northern Immigration Pilot (RNIP) was established by the Government of Canada as an economic development tool for rural and northern communities across the country. The RNIP ended on August 31, 2024, and was replaced by the Rural Community Immigration Pilot (RCIP) which launched in January 2025. Regions like the West Kootenays, British Columbia, are facing significant labor shortages due to one or more of the following factors: youth outmigration, a declining birth rate and an aging population, as well as other challenges like housing and access to services. The initiative uses immigration to help address regional labor shortages; it created a pathway to permanent residency for skilled foreign workers and their families who intend to settle in the region.
The pilot was managed and delivered by Community Futures Central Kootenay. The West Kootenay region, home to over 90,000 people, is located in southern British Columbia along the U.S. border. The key economic activities in the region are resource extraction, forestry, agriculture, tourism and entrepreneurialism. RNIP comprised 11 participating communities: Ainsworth, Balfour, Castlegar, Crescent Valley, Fruitvale, Nelson, Rossland, Salmo, Slocan City, South Slocan and Trail.
Addressing Labor Shortages
The Canadian Government launched the RNIP to address labor shortages in communities across Canada. The program offers the potential for permanent residency for skilled foreign workers in exchange for them settling in the region long-term with their families. The West Kootenay region had a steering committee determining the priorities and goals for the pilot, including the priority sectors and occupations to support economic growth in the region.
Once priority sectors (Health; Education; Law and Social, Community and Government Services; Sales & Service; Trades, Transport, and Equipment Operator; and Manufacturing and Utilities) and occupations (social workers, bookkeepers, carpenters, cooks, bakers and early childhood educators) were determined, there are three important steps in the pilot: (1) Employer Designation: Employers interested in hiring skilled foreign workers need to apply for their designation and prove they are committed to fair practices. (2) Candidate Eligibility: An applicant must have received a job offer from a designated employer and meet federal requirements such as language requirements, work experience and educational background. They must also show they intend to live in the community permanently. (3) Community Recommendation: Once the candidate has proven that they meet the requirements outlined by the government, the employer must submit an application for community recommendation. If the application is approved, the candidate receives a recommendation report and apply for permanent residency.
Goals and Objectives
The primary goal of the RNIP was to bring skilled foreign workers into the West Kootenay region to address labor shortages. The objectives of the pilot are to: (1) create a welcoming environment that attracts, integrates and retains newcomers; (2) increase community diversity; (3) contribute toward regional economic sustainability; (4) increase productivity and revenues for regional businesses and organizations; (5) create a secure way for employers to retain skilled employees; (6) create peripheral employment benefits through the settlement of spouses and dependents who also participate in the labor force; (7) have newcomers contribute to the economy and increase the productive capacity of the region; (8) have skilled newcomers start successful career paths in long-term stable employment and (9) create opportunities for business development and business succession through the provision of information, resources and supports to permanent residents.
The RNIP was a great success in West Kootenay. From June 2020 to December 2022, 144 employers throughout the 11 communities in the region used the pilot to fill positions in their businesses. The community recommended 302 applicants for permanent residency. Forty-five of these applicants were employed as health care aides, 29 as early childhood educators and assistants and 81 as food and beverage sector workers. In addition to the 302 primary applicants, 250 spouses and dependents of the applicants were also recommended by the community.