The Saskatchewan NDP has raised concerns about the loss of local businesses in the province due to inflationary costs during the tenure of the Saskatchewan Party. The NDP’s jobs and economy critic, Aleana Young, stated that the province has seen a significant decline in the number of businesses, with 875 businesses lost since 2018, and 40,000 fewer jobs available in the province. Statistics Canada data released in January 2023 to January 2024 showed that Saskatchewan lost 91 local businesses, with eight in Regina, 30 in Saskatoon, and 53 in other areas of the province. Young highlighted the need for a government that does not increase taxes, fees, or power rates on businesses.
However, the Saskatoon Chamber of Commerce provided a contrasting view, suggesting that the city may be doing better than the Statistics Canada report indicates. The CEO, Jason Aebig, mentioned that Saskatoon issued 115 new business licenses in February, the highest number since 2020, with a net gain of 41 commercial and 36 home-based businesses year over year. Despite this, Aebig acknowledged that many business closures may not be reported accurately, with 71 percent of closures being small businesses. The Canadian Federation of Independent Business (CFIB) emphasized that taxes and regulatory costs remain the top concern for businesses, as inflationary costs have made it challenging for business owners to keep up.
Brianna Solberg from the CFIB highlighted the rising costs in various aspects such as food, fuel, rent, and utilities, making it difficult for businesses to thrive. Insurance costs were also mentioned as a growing concern, with premiums increasing due to the number and cost of claims. The CFIB has urged the provincial government to consider removing the provincial sales tax on insurance to ease the burden on businesses. Young echoed these concerns, noting that consumers in Saskatchewan are struggling due to increased expenses in daily essentials, leading to reduced spending capacity at local businesses.
In response to these concerns, the provincial government defended its economic performance, stating that Saskatchewan has the second-highest per capita rate of small businesses in the country, with 122 small businesses for every 1,000 people. The Ministry of Trade and Export Development emphasized the government’s commitment to attracting investment to spur economic development, create jobs, and provide opportunities for the people of Saskatchewan. The government highlighted a growth in the labor force, with an increase of 10,500 full-time jobs year over year in March and ranking second in the nation for GDP growth. Statistics Canada’s latest GDP numbers showed a record high of $77.9 billion for Saskatchewan in 2023, reflecting a 1.6 percent increase.
Overall, the debate between the Saskatchewan NDP, business associations, and the provincial government underscores the challenges faced by local businesses in the province. While the NDP raises concerns about the loss of businesses and jobs due to inflationary costs and tax hikes, the business community acknowledges these challenges and calls for support through measures like tax relief on insurance. The provincial government emphasizes its efforts to attract investment and drive economic growth, pointing to positive indicators such as a growing labor force and GDP. Moving forward, collaboration between stakeholders and effective policies may be essential to support the resilience and growth of businesses in Saskatchewan.
