Economic confidence among British Columbia’s small businesses is plummeting, a prominent Canadian business organization is warning.
Long-term economic confidence among small businesses nationally has risen to its highest point since 2022, according to the Canadian Federation of Independent Business’s (CFIB) most recent “monthly business barometer.”
“But there is a catch,” said CFIB senior policy analyst Emily Boston.
“Here in B.C., our long-term confidence in the economy is 12 per cent below its historic average, sitting at about 55 points.”
“It also has the second lowest long-term confidence index in the country right now,” she added.
Boston said numerous factors contributed to the gloomy outlook, which builds on uncertainty among businesses prior to B.C.’s provincial election.
Ongoing labour disputes including at B.C.’s ports and Canada Post, along with the threat of possible new 25 per cent tariffs from the U.S. have compounded those fears, she said.
“It’s really a perfect storm for small businesses.”
While B.C. has added about 17,000 part-time jobs since October of last year, it shed about 1,400 full-time jobs in that same period and has seen overall employment fall by about 42,000 jobs since April, according to government data.
Boston said economic forecasts also expect B.C. to have one of the slowest growth rates in Canada.
In September, the Conference Board of Canada projected B.C.’s economy would grow 1.2 per cent this year, climbing to 2.1 per cent next year.
“The confidence level plunging like we are seeing is indicative of the fact that B.C. has ever been ratcheting up costs on businesses, taxation, making us a much less competitive jurisdiction than the rest of Canada,” BC Conservative finance critic Peter Milobar argued.
“And the consequences are very real in terms of private sector job growth and private sector job loss.”
The CFIB is calling on B.C.’s freshly re-elected NDP government to implement a suite of measures, including cutting the small business tax and corporate general income tax rates, “easing the burden” of paid sick days and lifting the payroll threshold on the Employer Health Tax.
“Cutting taxes, looking at these regulatory burdens that make day to day life more difficult and complex for small business owners is a really great place to start,” she said.
New B.C. Finance Minister Brenda Bailey said the province is already taking steps to tackle business concerns, including a move in the 2024 budget to raise the Employer Heath Tax payroll threshold to $1 million.
Bailey said she is optimistic broader economic conditions are improving.
“Interest rates are declining. We’ve seen inflation living in that range between one and three or two per cent, and I think some of the pressures that we have been experiencing are going to improve,” she said.
“Also, I will say we have made decisions, particularly in regards to the tourism, arts and culture file to bring a lot of business into British Columbia for small businesses,” she added, pointing to the 2026 World Cup, the Grey Cup and the upcoming Invictus Games.
Bailey is set to unveil her first budget as Finance Minister on March 2.