Saskatchewan NDP Slamming the provincial government, it is being said that the province has lost a large number of people local business Due to inflationary costs since the Saskatchewan Party came to power.
“When we look at 2018 to where we are today, we lost 875 businesses in Saskatchewan. He persists. He is eternal. This is not something a healthy economy looks like,” said Eliana Young, NDP jobs and economy critic.
Young said there are 40,000 fewer jobs available in the province now than there were in 2018.
Statistics Canada released data Monday showing that from January 2023 to January 2024, Saskatchewan lost 91 local businesses — eight in Regina, 30 in Saskatoon and 53 in other areas of the province.
“They’re looking for a government that’s not going to impose more taxes and fees,” Young said. “A government that is not attacking them by increasing electricity rates three times in a year, a government that is not increasing the PST on the most impacted industries in the province.”
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The Saskatoon Chamber of Commerce said the city may actually be performing better than Statistics Canada reports.
“In February, Saskatoon issued 115 new business licenses, the highest number of new licenses year-over-year since 2020,” said CEO Jason Ebig. “All told, year over year, we are actually up 77 businesses, with a net profit of 41 commercial and 36 home-based.”
Ebig said the science is not always “exact” because many owners do not report their closures, but he noted that 71 percent of businesses that closed during the same period were small businesses.
Brianna Solberg of the Canadian Federation of Independent Business (CFIB) said tax and regulatory costs are still the biggest concerns for businesses.
“Food, fuel, rent, utilities, you name it, it’s more expensive now,” Solberg said. “And business owners just looking to take a break.”
He also said that insurance costs are constantly rising and it is more difficult to stay in business even at the peak of the pandemic due to inflationary costs.
“We have heard from insurance brokers that premiums are increasing because of the cost of claims and the number of claims.”
The CFIB has asked the provincial government to consider removing the provincial sales tax on insurance because right now, businesses pay the PST on insurance along with the insurance premium pack.
Young said Saskatchewan consumers no longer have the luxury of spending extra at local businesses.
“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 electric bill, to pay their mortgage. We won’t look at the expense,” he said.
With 122 small businesses per 1,000 people in Saskatchewan, the province has the second-highest per capita rate in the country, the provincial government said Wednesday.
“The Government of Saskatchewan is committed to attracting investment to the province that drives economic growth, creates jobs and creates opportunities for Saskatchewan people,” a statement from the Ministry of Trade and Export Development said.
It said Saskatchewan’s labor force also continues to grow, with March seeing an increase of 10,500 full-time jobs year-over-year and Saskatchewan ranking second in the country in terms of gross domestic product growth.
Statistics Canada’s latest gross domestic product (GDP) figures, released today, show Saskatchewan’s 2023 GDP “reached an all-time high of $77.9 billion, an increase of $1.226 billion or 1.6 per cent.”
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