The emerald shores of Prince Edward Island mask a growing economic paradox that’s leaving many local business owners frustrated. While Statistics Canada’s latest employment figures show a national uptick in hiring with 37,000 new positions added last quarter, PEI’s economy tells a distinctly different story—one where “Help Wanted” signs have become a fixture in storefronts across Charlottetown, Summerside, and beyond.
“I’ve been in business for 22 years, and I’ve never seen anything like this,” says Marina Chen, owner of Charlottetown’s Harbor View Restaurant. “We’ve had to reduce our hours by 30% simply because we can’t find enough staff to operate at full capacity. It’s affecting our bottom line significantly.”
The disconnect between national employment gains and PEI’s persistent labour shortage highlights a complex economic challenge facing Canada’s smallest province. According to data from the PEI Department of Economic Growth, the island currently has approximately 2,700 unfilled positions—a staggering number for a province with a population just over 170,000.
Economic analysts point to several factors driving this paradoxical situation. The island’s rapidly aging demographics play a crucial role, with nearly 23% of residents now over 65—up from 19% just five years ago. This demographic shift has simultaneously reduced the available workforce while increasing demand for services.
“The aging population is creating a double-bind for PEI’s economy,” explains Dr. Leah Thompson, economist at the Atlantic Policy Institute. “We’re seeing increased demand for healthcare, personal services, and hospitality, precisely as the working-age population contracts.”
Tourism, PEI’s economic cornerstone, has rebounded robustly post-pandemic, with visitor numbers exceeding pre-2020 levels by 12% this past summer. This surge has intensified hiring pressures across the hospitality sector. Hotels and restaurants report vacancy rates between 18-25%, with positions remaining unfilled despite wage increases averaging 14% since 2023.
The construction industry faces similar challenges. “We’re turning down projects because we simply don’t have the manpower,” reveals James MacPherson, president of the PEI Construction Association. “There are currently 450 unfilled construction positions across the island, and that number could double next year with the planned infrastructure projects.”
Provincial officials have implemented several initiatives to address these challenges. The “Island Workforce Strategy 2025” includes expanded immigration pathways specifically designed for PEI’s labor needs, investment in skills training programs, and financial incentives for businesses that create innovative employment solutions.
“We recognize the severity of this situation for our business community,” states Minister of Economic Development Sarah MacDonald. “Our strategy takes a multi-faceted approach, acknowledging there’s no single solution to this complex challenge.”
Immigration has provided some relief, with PEI welcoming a record 3,800 newcomers last year. However, retention remains problematic—approximately 40% of immigrants leave the province within three years, often citing limited career advancement opportunities and higher living costs relative to wages.
Housing affordability compounds these challenges. PEI’s real estate market has experienced the sharpest price increases in Atlantic Canada, with average home prices jumping 47% since 2021. Rental vacancy rates hover below 1% in Charlottetown, creating additional barriers for potential workers considering relocation to the island.
The technology sector offers a potential bright spot in this otherwise challenging landscape. Several tech firms have established operations in PEI, attracted by lower overhead costs and quality of life factors. These companies report fewer hiring difficulties, as they can offer competitive salaries and remote work options that appeal to a broader talent pool.
“Our hybrid work model allows us to hire across Canada while maintaining our island headquarters,” explains William Jiang, CEO of MarineTech Solutions, a marine technology firm based in Stratford. “We’ve doubled our staff in the past 18 months and continue to grow.”
As PEI navigates this persistent labour shortage amid national job growth, questions about sustainable economic development loom large. Can the island find innovative solutions to attract and retain workers while maintaining its distinctive character and quality of life, or will structural limitations ultimately constrain its economic potential in ways that reshape its future?
