Hiring plans still ‘weak’ at Sask. small businesses

CFIB survey shows nine per cent plan to hire, 11 per cent predict layoffs

Optimism among small business owners in Saskatchewan remained unchanged in September, but still below the national average, according to the latest Canadian Federation of Independent Business (CFIB) monthly ‘business barometer.’

“Small business optimism in Saskatchewan remained basically constant in September, with an index of 54.1, but is still 11 points below the range of index levels normally associated when the economy is growing at its potential,” said Marilyn Braun-Pollon, CFIB’s vice-president for Prairie and agri-business.

“Hiring plans are still weak with only nine per cent of business owners looking to hire, while 11 per cent are foreseeing layoffs.”

The good news is 37 per cent of businesses in Saskatchewan say their overall state of business is good (versus 35 per cent nationally), while 14 per cent say it is bad (14 per cent nationally).

Other highlights of the Saskatchewan business barometer survey for September:

Low domestic demand remains the main operating challenge (46 per cent), followed by management skills/time constraints (31 per cent), and shortage of skilled labour (30 per cent).

Major cost pressures for small business include: wage costs (48 per cent); taxes and regulatory costs (46 per cent); insurance costs (38 per cent) and banking fees (34 per cent).

Nationally, small business optimism drifted slightly lower in September, with the index dropping less than a point to 59, suggesting that economic conditions are stable, but weak.

Results in the provinces did not change much. The biggest gain was registered in Quebec, with its index rising just over two points to 67.1, now the most optimistic place in the country.

Small improvements were also seen in Newfoundland and Labrador (41.1) and Alberta (47.1), but the former economic powerhouses continue to have the least optimistic business owners.

Downward shifts, mostly minor, were registered in the remaining provinces.

An index level above 50 means owners expecting their business’ performance to be stronger in the next year outnumber those expecting weaker performance.

Index levels normally range between 65 and 70 when the economy is growing at its potential.

September 2016 survey findings are based on 573 responses from a random sample of CFIB members to a web survey.

Findings are statistically accurate to plus or minus 4.1 per cent 19 times in 20.