Employers 'still grappling with costs increases on all fronts': CFIB
The Canadian economy grew by 2.0 per cent in the second quarter of 2024 following 1.7 per cent growth in Q1, according to a report released by the Canadian Federation of Independent Business (CFIB).
“The decent growth in the economy in the first half of 2024 correlates with a recent uptick in long-term business optimism,” says CFIB.
“While encouraging, it doesn't mean that all is well for small businesses. They're still grappling with steep cost increases on all fronts, including wage pressures, significant energy and fuel costs, and high interest rates.”
The change comes as the inflation rate receded to 2.8 per cent in Q2.
Consumer Price Index “(CPI) inflation continued to decrease in Q2, albeit at a slower pace compared to the previous two quarters,” according to CFIB’s The Main Street Quarterly.
“A more significant decline in inflation is expected in Q3, which is likely to prompt the Bank of Canada to continue easing credit conditions. However, core inflation (excluding food and energy) is anticipated to remain steady at 2.8 per cent in the short term, as certain expenditure categories, such as housing, continue to exert upward pressure on prices.”
Looking ahead, the third quarter economy should continue growing at about the same pace as long as inflation remains under control and the central bank continues cutting rates, according to the CFIB. Also, the CPI is expected to continue to decline to 2.4 per cent.
The latest Zoho Canada Business Outlook Report by Zoho Corporation revealed a decline in business optimism among Canadian business leaders due to ongoing economic challenges.
Job vacancies continue to decline
The job vacancy rate in Canada’s private sector in 2024 Q2 dropped to 3.3 per cent, according to the CFIB report.
Almost all provinces experienced a decrease or remained stable, with the exception of New Brunswick, which recorded an increase in its quarterly vacancy rate.
Most sectors recorded a quarterly decline in their vacancy rates, However, except enterprise management (+0.1) and natural resources (+0.1) saw an increase. There was no change in numbers for finance, insurance, and real estate (0.0).
(Insert photo: Job vacancies)
Source: CFIB
There was little change when it comes to Canada’s employment numbers for the month of June compared to the statistics for May, according to a Statistics Canada (StatCan). Overall, Canada lost 1,400 jobs in June following an increase of 27,000 in May. Canada added 90,000 jobs in April.
