CFIB Says Lengthy Harvest A Major Factor In Business Optimism Drop

The tough harvest, due to unfavourable weather conditions, is a major factor taking its toll on small business optimism in the province says a small business lobby organization.

The Canadian Federation of Independent Business (CFIB) released its monthly Business Barometer for October and it shows business optimism in Saskatchewan is the lowest across the country from CFIB members who responded to the survey.

The Business Barometer is a monthly survey of CFIB members that asks their hiring plans as well as what factors are impacting small business the most. It then indexes the results.

The CFIB's October Business Barometer shows small business optimism is the lowest in Saskatchewan.The index also showed 25 percent of businesses set to layoff in the next three months - a record high - versus 9 percent set to hire over the same time…

The CFIB's October Business Barometer shows small business optimism is the lowest in Saskatchewan.

The index also showed 25 percent of businesses set to layoff in the next three months - a record high - versus 9 percent set to hire over the same time period.

According to the CFIB's Business Barometer optimism amongst Saskatchewan small business owners declined to 50 in October down from 53.1 in September. Nationally the average index was 59.8. Saskatchewan has the lowest business optimism amongst CFIB members who responded to the survey.

The Business Barometer for September also showed a drop in business optimism from August.

“Saskatchewan's small businesses are dealing with a lot of uncertainty, which is reflected in the province’s index dropping a further 3 points in October to 50.0,” said Marilyn Braun-Pollon, CFIB’s Vice-President, Prairie & Agri-business said in a statement.

The index had some very bad news for employees with CFIB's small business members set to have record layoffs over the next three months.

“Hiring plans have also weakened with 25 per cent of business owners planning lay-offs in the next three months, which is a record high for lay-offs in the province compared to only 9 per cent who plan on hiring,” Braun-Pollon said.

“We know there are a number of challenges and uncertainties facing Saskatchewan businesses,” added Braun-Pollon in the statement. “We hope the new Saskatchewan Growth Plan will outline policies that will help restore small business confidence and continue to address Saskatchewan’s outstanding competitive challenges.”

Highlights from the CFIB's October Business Barometer are:

  • 25% of businesses in Saskatchewan say their overall state of business is good (43% nationally); 19% say it is bad (12% nationally);

  • 9% plan to increase employment in the next 3 months (14% nationally) and 25% of Saskatchewan businesses plan to decrease full-time employment (14% nationally);

  • Insufficient domestic demand is the main operating challenge (51%), followed by shortage of skilled labour (29%) and management skills, time constraints (19%);

  • Major cost pressures for small business include: tax, regulatory costs (70%), fuel, energy costs (56%), wage costs (53%), and insurance costs (50%)

To read the CFIB's October Business Barometer click the link.




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