Small businesses in BC sunk to a new low when it came to their optimism in May according to the Canadian Federation of Independent Business.
The index fell over two-and-a-half points bringing their total to 58.8 – falling behind the national level for the first time in five years.
However, the recent announcement from the federal government regarding the Trans Mountain pipeline might ease some worries down the road.
“I think a lot of small business owners are breathing a sigh of relief especially those in the north who do support responsible resource development including the pipeline and I think that’s a good thing for the economy so those business in Prince George and the north are feeling a little bit better about the future,” says Richard Truscott, CFIB BC Vice-President.
“The pipeline issue has been somewhat resolved for now and it may support the optimistic outlook but there are other big policies looming like the increase in the minimum wage.”
The province’s minimum wage jumps to $12.65 today from its previous mark of $11.35.
He adds a lot of business owners in Prince George and Northern BC who support responsible resource development feel good about the future.
Unfortunately, the upcoming Employer Health Tax put forth by John Horgan’s NDP government, which is slated to kick in on January 1st, is creating panic for local small business owners and across the north.
“That’s a big issue, that’s a big policy coming on the horizon in a few and there are still a few months to go until then but business owners are scrambling now to figure out what the cost means and how they are going to deal with that and obviously this has had an impact on their view of the future.”
“This is a worrisome trend and that’s moving things in the wrong direction and we hope the BC government wakes up and starts to think about and may be having second thoughts about the aggressive policies they are trying to pursue.”
The declining optimism is likely to play a role in the number of summer jobs for students as only 15 percent of business owners plan on increasing staff in the next three months.
As a whole, BC business owners still feel good about their business as 44% see the health of their business as good, which is down two points from April.
Prince Edward Island had the most optimistic small business owners in the country with a rating of 70.5.
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