The Saskatchewan NDP is calling out the provincial government, saying the province has lost an extensive number of local businesses due to inflationary costs since the Saskatchewan Party has been in power.
“When we look at 2018 to where we are today, we have lost 875 businesses in Saskatchewan. That is sustained. That is continual. That is not something that a healthy economy sees,” said Aleana Young, NDP jobs and economy critic.
Young said the province has 40,000 fewer jobs available now than in 2018.
Statistics Canada released data Monday showing that from January 2023 to January 2024, Saskatchewan lost 91 local business — eight in Regina, 30 in Saskatoon and 53 in other areas of the province.
“What they’re looking for is a government that’s not piling on more taxes and fees,” Young said. “A government that isn’t hitting them with three power rate hikes in a year, a government that isn’t increasing PST on the hardest hit industries in the province.”
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The Saskatoon Chamber of Commerce said the city might actually be doing better than what Statistics Canada is reporting.
“In February, Saskatoon issued 115 new business licenses, the highest number of new licenses year-over-year since 2020,” CEO Jason Aebig said. “All told, year over year, we’re actually up 77 businesses, a net gain of 41 commercial and 36 home-based.”
Aebig said the science isn’t always “exact” as many owners don’t report their closures but noted 71 per cent of business closures during the same period were small businesses.
Brianna Solberg with the Canadian Federation of Independent Business (CFIB) said taxes and regulatory costs are still the number one concern businesses are facing.
“Food, fuel, rent, utilities, you name it, it’s more expensive now,” Solberg said. “And business owners are just looking to catch a break.”
She also said insurance costs are climbing the ranks and it’s more difficult to be in business than even at the height of the pandemic due to inflationary costs.
“We’ve heard from insurance brokers that it’s the cost of claims and the number of claims that’s hiking premiums.”
The CFIB has asked the provincial government to consider removing the provincial sales tax on insurance because right now, businesses pay the insurance premium pack as well as the PST on insurance.
Young said Saskatchewan consumers don’t have the room for extra spending at local businesses anymore.
“People are struggling because they’re having to pay more for food at the grocery store, to put gas in the tank, to pay their power bill, to pay their mortgage. We are not going to see spending,” she said.
The provincial government said on Wednesday that with 122 small businesses for every 1,000 people in Saskatchewan, the province has the second highest per capita rate in the country.
“The Government of Saskatchewan is committed to attracting investment into the province, which spurs economic development, creates jobs, and builds opportunities for Saskatchewan people,” said a statement from the Ministry of Trade and Export Development.
It said Saskatchewan’s labour force also continues to grow, showing an increase of 10,500 full time jobs year-over-year in March and noted Saskatchewan is second in the nation for GDP growth.
Statistics Canada’s latest Gross Domestic Product (GDP) numbers, released today, show Saskatchewan’s 2023 GDP “reached an all-time high of $77.9 billion, increasing by $1.226 Billion or 1.6 per cent.”
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