The Saskatchewan NDP has criticized the provincial government for the loss of 875 local businesses since the Saskatchewan Party took office. They also mentioned that there are currently 40,000 fewer jobs available in the province compared to 2018. Statistics Canada data showed that Saskatchewan lost 91 local businesses from January 2023 to January 2024, with eight in Regina, 30 in Saskatoon, and 53 in other areas of the province. The NDP highlighted concerns about increased taxes, fees, power rate hikes, and the PST being raised on the hardest hit industries in the province.
The Saskatoon Chamber of Commerce provided a different perspective, stating that the city may actually be performing better than indicated by Statistics Canada. In February, Saskatoon issued 115 new business licenses, the highest number since 2020. The CEO mentioned a net gain of 77 businesses, with 41 commercial and 36 home-based businesses. However, it was noted that many business closures go unreported, with 71 percent of closures being small businesses. The Canadian Federation of Independent Business raised concerns about taxes, regulatory costs, and rising insurance premiums impacting businesses’ ability to thrive.
The CFIB has urged the provincial government to consider removing the provincial sales tax on insurance, as businesses currently pay both the insurance premium and the PST on insurance. The cost of insurance claims is cited as a factor driving up premiums. Business owners are facing challenges due to inflationary costs, with expenses like food, fuel, rent, and utilities becoming more expensive. Consumers are feeling the pinch as well, making it harder for them to spend money at local businesses. The NDP emphasized that people are struggling to cover basic expenses like groceries, gas, power bills, and mortgage payments, which leaves less room for discretionary spending.
The provincial government responded to the criticism by highlighting Saskatchewan’s high per capita rate of small businesses, with 122 small businesses for every 1,000 people, the second highest in the country. They emphasized their commitment to attracting investment, creating jobs, and building opportunities for Saskatchewan residents. The government pointed out positive indicators such as a growing labour force, a significant increase in full-time jobs year-over-year, and ranking second in the nation for GDP growth. Statistics Canada’s latest GDP numbers showed that Saskatchewan’s GDP reached an all-time high of $77.9 billion in 2023, increasing by $1.226 billion or 1.6 percent.
Overall, the debate surrounding the state of businesses in Saskatchewan reflects differing perspectives on the economic situation in the province. While the NDP raises concerns about job losses, business closures, and inflationary costs impacting local businesses and consumers, the provincial government highlights positive indicators such as a high per capita rate of small businesses and GDP growth. The business community, represented by organizations like the Saskatoon Chamber of Commerce and the CFIB, points to challenges such as rising taxes, regulatory costs, and insurance premiums that are affecting their operations. Moving forward, finding a balance between addressing these challenges and leveraging the province’s strengths to support business growth and economic development will be key for the prosperity of Saskatchewan’s business community.
