The demand for associate veterinarians: Surveying the “shortage”

Over recent years, as the Canadian economy has picked up steam, and veterinary hospitals have seen their revenues and net incomes grow, the demand for associate veterinarians has climbed to new highs. This has resulted in many veterinary hospitals having increasing difficulty attracting veterinarians to job opportunities, leading some to believe there is a shortage.

Data from the CVMA confirm that the number of hospitals seeking an associate veterinarian has surged. By measuring the number of help-wanted advertisements placed for associate veterinarians in The Canadian Veterinary Journal and on the CVMA’s website, it is possible to estimate demand across Canada. The number of ads has jumped from a low of 52 at the beginning of 2016, to a record high of 115 in March 2019 (Figure 1).

Figure 1.

Monthly number of help-wanted advertisements for associate veterinarians placed with the CVMA.

One commonly cited hypothesis as to a cause of this increased demand is that associate veterinarians these days don’t want to work as many hours as they used to. Where a practice used to only need 1 associate, they now need 2 to work the same total number of hours, as more veterinarians focus on work-life balance. Yet, the data do not seem to support this assertion. Although many associate veterinarians reduce their hours as they grow in experience, newer graduates continue to work a greater number of hours. In fact, the national weighted average number of hours worked annually for full-time associate veterinarians has climbed from 1703 in 2009 to 1777 in 2019. As a group, associate veterinarians are working more today than they were 10 years ago, well before the current talk of a shortage (Table 1).

Table 1.

Median annual hours worked for full-time associate veterinarians, stratified by province, 2009 and 2019.

	Full-time associate veterinarian median annual hours worked		Change
	2009	2019
Canada	1703	1777	4.3%
BC	1819	1798	−1.2%
AB	1880	1880	0.0%
SK	1880	1880	0.0%
MB	1880	1959	4.2%
ON	1692	1792	5.9%
QC	1504	1632	8.5%
NB	1880	1792	−4.7%
NS	1645	1880	14.3%
PE	1645	1692	2.9%
NL	1734	1800	3.8%

BC — British Columbia; AB — Alberta; SK — Saskatchewan; MB — Manitoba; ON — Ontario; QC — Quebec; NB — New Brunswick; NS — Nova Scotia; PE — Prince Edward Island; NL — Newfoundland and Labrador.

In response to this perceived shortage, some have suggested that veterinary colleges be lobbied to add seats, resulting in more graduates and thus more veterinarians to satisfy this demand. While this would certainly add to the pool of veterinarians available, this strategy would take, at a minimum, 4 to 5 years to bear fruit. Yet it was only a short 5 years ago, in 2015, that the number of help-wanted advertisements for veterinarians was languishing at low levels. In the American veterinary market, jobs were scarce compared to applicants, resulting in the American Veterinary Medical Association (AVMA) declaring there to be “excess capacity.” Given how rapidly conditions have changed, caution would be warranted in making plans for 5 years from now, based on today’s realities.

This is especially true as Canada’s population continues to change and age. In 2019, veterinarians are fortunate to have 2 huge generational cohorts currently in some of the prime pet-owning years of their lives; Baby Boomers and Millennials. While the average Baby Boomer today is 63.1 years old (per Statistics Canada), that figure will obviously climb over the coming years. History would suggest that, as people age, they begin to own pets less commonly. By 2029, nearly 1 in 4 (24%) Canadians will be over 65 years of age, compared to 18% today. The impact of these shifting demographics needs to be considered before jumping to change the supply of veterinarians.

In addition, this shortage appears to be regional in nature. A recent survey in Ontario found that associate veterinarian help wanted advertisements in Toronto received a median of 4 respondents, those in the greater Toronto area (GTA) a median of 3 respondents, and those in areas just outside the GTA a median of 2 respondents. More rural parts of the province, such as northern Ontario, received a median of 0 respondents to their help wanted advertisements. These findings are echoed by the AVMA’s Economics Department, which determined that shortages of veterinarians were area-specific (e.g., a shortage of rural food animal veterinarians in the Kent County of Delaware), and that help wanted advertisements in larger cities (e.g., New York, Los Angeles, Chicago, Seattle) continued to attract a greater number of applicants than those in more rural parts of the country.

All of this is likely little comfort to the individual veterinary practice owner who is struggling to find an associate to help with the caseload they are currently experiencing. In this environment, what can be done to increase the odds of attracting a veterinarian? Most economists would likely suggest that the rational response is to increase the wages on offer.

Mr. Neel Kashkari, President of the Federal Reserve Bank of Minneapolis has responded to complaints of a shortage of skilled labor by simply stating, “If you pay more, they will come.” This assertion is supported by one of the basic fundamental tenants of economics: the supply and demand curve. As demand has climbed, higher pricing is necessary to attract the supply required to re-attain equilibrium. Some may argue that the supply of veterinarians is limited, so greater pay won’t boost supply; but this seems unlikely, as higher associate veterinarian wages would draw in labor from other provinces and countries, entice locums, and those in government, industry, and academia, and further incentivize those associates currently working part-time to consider taking on more hours (by increasing the compensation they sacrifice in working part-time).

The results of the 2019 Provincial Surveys of Compensation and Benefits for Associate Veterinarians suggest that some Canadian veterinary hospitals have indeed begun to respond to the increased competition for associates with higher wages (Table 2). The national weighted average annual compensation for full-time associates climbed by 6%, to $89 980, well above the rate of inflation (Table 2).

Table 2.

Median annual compensation for full-time associate veterinarians, stratified by province, 2018 and 2019.

	Full-time associate veterinarian median compensation		Change
	2018	2019
Canada	$84 847	$89 980	6.0%
BC	$90 000	$100 000	11.1%
AB	$90 000	$95 000	5.6%
SK	$81 000	$85 000	4.9%
MB	$87 500	$85 000	−2.9%
ON	$85 000	$90 000	5.9%
QC	$79 500	$85 000	6.9%
NB	$76 000	$74 500	−2.0%
NS	$80 000	$80 000	0.0%
PE	$66 000	$75 900	15.0%
NL	$106 000	$105 000	−0.9%

BC — British Columbia; AB — Alberta; SK — Saskatchewan; MB — Manitoba; ON — Ontario; QC — Quebec; NB — New Brunswick; NS — Nova Scotia; PE — Prince Edward Island; NL — Newfoundland and Labrador.

As University of British Columbia economics professor Dr. David Green succinctly puts it: “When something is scarce, the price for it goes up and people and companies adjust. That’s the whole wonder of the capitalist system.”