Small business confidence at new low
Alberta outlook signals ‘ dire’ time, demands attention, group says
Small business confidence in Alberta has reached record lows, a “dire” situation that requires government attention, says the Canadian Federation of Independent Business.
Its latest Business Barometer measuring the outlook of Alberta entrepreneurs “plummeted” to 34, a decline of more than six points from August and the lowest level registered since the organization started tracking business confidence levels 15 years ago.
The previous low of 35.9 was set by Ontario in December 2008, it said.
The index is measured on a scale of 0 to 100. Readings greater than 50 suggest owners expect an improvement over the next year, and a level of between 65 and 70 is consistent with an economy growing at its potential.
“This all- time low speaks to the dire situation small businesses are currently experiencing and there doesn’t appear to be any positive news for job creators in the foreseeable future,” said Amber Ruddy, the CFIB’s Alberta director.
“Entrepreneurs are in uncharted territory and this government must not use the excuse that they are new to delay announcing their overall vision for entrepreneurship.
“Having been in office for almost five months, elected officials can no longer ignore the growing concerns of independent business owners.
“Minimum wage hikes, corporate tax increases, and the prospect of changes to employment standards are making a bad situation worse.”
Premier Rachel Notley gave some hints about the NDP’s first provincial budget next month in a speech Thursday at the Alberta Urban Municipalities Association convention in Calgary, saying the government will not lay off workers despite a drop in revenue triggered by plunging resource revenues.
A budget was introduced, but never passed, by former premier Jim Prentice’s Progressive Conservative before it was defeated by Notley and the NDP in May.
Finance Minister Joe Ceci, who has been touring the province to gather input for his budget, has said Alberta is on track for a record $ 5.9- billion deficit this year as the oil crunch hits families and businesses.
“It makes no sense to respond to layoffs and job losses in the economy by making things worse by more layoffs and more job losses,” Notley said.
The government has previously said it’s developing a job- creation strategy but has not offered details.
The CFIB’s Ruddy said the resources sector continues to show the weakest levels of optimism, but below- par sentiment is also significant in the construction, wholesale trade and hospitality sectors.
The survey found 26 per cent of owners in September said they expect to cut full- time staff while only 13 per cent intend to hire in the coming months. Plans to cut back on staff are up six points and plans to hire are down two points compared to August, said the CFIB.
The highest confidence level in Canada is in Nova Scotia at 63.7 followed by British Columbia ( 62.9), Newfoundland & Labrador ( 61.5) and New Brunswick ( 61.4).
“Things aren’t good. There’s no real way to sugar- coat this,” said Ruddy. “Bigger businesses have made quicker decisions but small businesses have been more nimble. So we’re not seeing the fallout of this right away.”
Its next survey will be completed prior to the federal election Oct. 19 and the Alberta provincial budget following that.
Nationally, the barometer fell by less than one point to 56, the lowest level since April 2009 and fourth consecutive monthly decline.