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.

B次元官网网址淭he 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,B次元官网网址� 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.

B次元官网网址淏usinesses in B.C. have been finding it very challenging to get the help and staff they need,B次元官网网址� said Scott.

B次元官网网址淥ver half (59 per cent) of B.C. small businesses report experiencing labour shortages, the fourth highest in Canada.B次元官网网址�

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 bachelorB次元官网网址檚 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.

B次元官网网址淭hose issues existed pre-pandemic but what the pandemic has done in exacerbate that problem even more,B次元官网网址� Scott said.

B次元官网网址淚t is vital we get past (the pandemic) and find a way for business to operate under these conditions. I can tell you the numbers: the vast majority of businesses are making less than what they expected to make coming into Christmas.

B次元官网网址淚 am not sure how much longer many businesses can survive who are constantly peppered with pandemic issues or canB次元官网网址檛 find staff to help sell their goods and services.B次元官网网址�

Scott said the CFIB has offered several short-term solutions to help ease the financial predicament many small businesses face including:

B次元官网网址� Improve and streamline the temporary foreign worker and immigration processes to bring more workers to Canada faster.

B次元官网网址� Stimulate automation through programs or tax credits.

B次元官网网址� Provide tax relief for workers over 65 who wish to remain employed by making their hours worked tax-free.

B次元官网网址� Ensure Employment Insurance programs donB次元官网网址檛 discourage individuals from returning to work.

B次元官网网址� Reduce EI premiums for small businesses to offset the costs of hiring and training staff.

B次元官网网址� Add tax credits for worker training, particularly for informal, on-the-job training and tax credits for hiring young graduates and students.

Of those suggestions, Scott said EI premium and tax relief are what government can do now to free up more capital for businesses to offer incentives to attract staff.

While the positive outlook for 2022, seems to have been sidelined by the Omicron wave outbreak now taking hold globally before 2021 has even ended, Scott says trying to remain positive will be challenging.

B次元官网网址淚 guess what I can say is we are now in the Christmas season and going forward we are not seeing the restrictions yet we have seen before. Businesses are still open, people can still patronize restaurants with their friends, you can still go to the local stores and buy Christmas gifts, we can still continue to reconnect to local small business owners,B次元官网网址� he said.

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