11 December 2025
Labour Shortage Impacts on the Protection of Consumer Rights and Customer Service Quality
The rampant labour shortage in Canada in recent years, due in part to an ageing population, was exacerbated by the COVID-19 pandemic. The health crisis led to an unprecedented labour shortage in multiple sectors. Although the situation has improved somewhat since 2023, recruitment and retention challenges persist for many companies.
However, businesses are not the only ones impacted by the labour shortage. Consumers are also victims, whether because of the increase in the costs of goods and services or the difficulty they face in obtaining certain goods and services. The aim of this research is to better understand the impact and consequences of the labour shortage through the lens of consumer law.
The challenges faced by consumers stem first and foremost from the difficulty that companies have in honouring contracts concluded with consumers. Some companies attempt to invoke the labour shortage as a reason to evade their contractual obligations. However, in the courts’ view, a staffing shortage cannot be used as a loophole for companies since it is an element over which they generally have some control.
Therefore, a company cannot change the terms of a contract, such as the date or price, as it sees fit. Otherwise, it must compensate the consumer in accordance with the rules applicable in the province.
Customer service was also not spared from the labour shortage. Whether due to wait times or unqualified staff, many consumers are dissatisfied with the services they have received, to the point that they have changed their consumption habits. While no law governs the quality of service a company must provide, it is still essential that companies offer ongoing customer service to ensure customer satisfaction.
Finally, this research highlights measures taken by companies to address the labour shortage, including employment incentives, the use of technology and the hiring of foreign workers. In this respect, new technologies used by businesses raise different concerns among consumers and questions about compliance with consumer protection laws.
With the labour shortage likely to persist or re-emerge on a cyclical basis, it is important that all stakeholders work together to promote fair and sustainable solutions for consumers and business alike.