Grim 2022 outlook for B.C.’s small business sector
December 20, 2021
Too many small businesses are currently hanging from a fiscal precipice of which they face difficulty surviving, according to the Canadian Federation of Independent Business (CFIB).
Seth Scott, a senior policy analyst for CFIB, says the COVID-19 pandemic has exacerbated a labour shortage issue that may send many small businesses struggling to hang on past a line of no return.
“The unfortunate thing is one-third of businesses today are losing money every day they stay open, so the question becomes how much longer can they hang on,” said Scott.
A CFIB labour market study revealed on average 63 per cent of respondents experiencing labour shortages expect to increase wages by 3.7 per cent, above the national average of 3.1 per cent, while 52 per cent reported a lack of any candidates at all.
“Businesses in B.C. have been finding it very challenging to get the help and staff they need,” said Scott.
“Over half (59 per cent) of B.C. small businesses report experiencing labour shortages, the fourth highest in Canada.”
There is also a qualification mismatch in the labour market, as 22 per cent of the unemployed had a level of education equal to or higher than a bachelor’s degree, while only 15 per cent of the market requires this level of education.
Scott said the labour shortage problem is complex, fueled by people retiring from the labour force without a younger demographic of workers with the same job skills able to replace them.
Job sectors such as construction, hospitality industry, enterprise management and transportation are the most acute focal points for feeling the negative impact of a changing workforce.
“Those issues existed pre-pandemic but what the pandemic has done in exacerbate that problem even more,” Scott said.
Source: Vancouver Island Free Daily
