Hiring intentions tumble to lowest levels since recession: Bank of Canada

OTTAWA -- The hiring and investment intentions of Canadian companies have fallen to their lowest levels since the 2009 recession, a new survey has found.

See Full Article

The country's businesses see a darker road in 2016 as firms continue to battle the bite of a commodity-price shock that has reached beyond the resource sector, according to the Bank of Canada's latest business outlook survey released Friday.

Companies' investment in equipment and hiring intentions for the next 12 months tumbled to their lowest levels since the 2009 recession, the findings say.

Fewer firms, the poll found, expected to boost their staff levels over that period, while plans to cut employees were more widespread -- and not just those in commodity-producing sectors and regions.

"The low-commodity-price environment poses significant challenges for many businesses," said the central bank's quarterly report.

"The negative effects of the oil-price shock are also increasingly spreading beyond the energy-producing regions and sectors.

"For example, many businesses across the energy supply chain continue to struggle as they adjust to an environment of weak demand."

The survey's interviews were conducted between mid-November and early December, before oil prices and the dollar slid even further.

Some exporters, however, remained optimistic their sales will benefit from strengthening foreign demand over the coming year, particularly amid widespread expectations of growth in the U.S. economy.

The questionnaire also found that some firms believe the lower dollar will boost foreign sales and tourism-related business. But at the same time, the cheaper loonie hikes up the costs of products and services that companies need to import from outside Canada.

The Bank of Canada also released the results of its latest senior loan officer survey, which focuses on business-lending practices over the final three months of last year.

It found that overall lending conditions had become more difficult for firms during the fourth quarter. Meanwhile, overall demand for credit was roughly unchanged.



Advertisements

Latest Economic News

  • Amazon workers in Germany, Italy stage Black Friday strike

    Economic CTV News
    BERLIN -- Workers at a half dozen Amazon distribution centres in Germany and one in Italy walked off the job Friday, in a protest timed to coincide with "Black Friday" to demand better wages from the American online giant. Source
  • Sobeys to cut 800 office jobs as part of reorganization

    Economic CTV News
    STELLARTON, N.S. -- The Sobeys grocery business will be cutting about 800 office jobs across Canada. Its chief executive, Michael Medline, says the job cuts are part of efforts to create one national organization out of five regional businesses. Source
  • Online sales surge in U.S. on eve of Black Friday

    Economic CBC News
    U.S. shoppers had splurged more than $1.52 billion US online by Thanksgiving evening, and more bargain hunters turned up at stores this year after two weak holiday seasons as retailers opened their doors early on the eve of Black Friday. Source
  • Looking for bargains online? Who you are can affect what you pay

    Economic CBC News
    Ever notice how after online shopping or browsing, the advertisements you see on every website seem to have been personalized to include whatever you were looking for? A Marketplace investigation reveals it's not just ads that your browsing history can affect — it's also the price you're charged. Source
  • Asian stocks drop after big sell-off

    Economic CTV News
    HONG KONG - Asian stock markets were mostly lower Friday with investors finding little guidance with Wall Street closed for the Thanksgiving holiday and Chinese markets in focus after a big sell-off the previous day. Source
  • World stocks rise amid upbeat European data, U.S. holiday

    Economic CTV News
    HONG KONG -- World stock markets were mostly higher Friday after more upbeat economic data in Europe, though trading was still subdued due to the U.S. Thanksgiving holiday. Investors were monitoring Chinese shares, which stabilized after an early tumble. Source
  • Stores hope deals, excitement draw shoppers for Black Friday

    Economic CTV News
    NEW YORK - Stores are hoping deals and excitement bring shoppers to stores and to their sites for Black Friday, one of the biggest shopping days of the year. But Black Friday has morphed from a single day when people got up early to score doorbusters into a whole season of deals, so shoppers may feel less need to be out. Source
  • After weeks of deals, U.S. stores aim to draw Black Friday crowds

    Economic CTV News
    NEW YORK -- Retailers are hoping deals and excitement bring shoppers to stores and to their sites for Black Friday, one of the biggest shopping days of the year. But Black Friday has morphed from a single day when people got up early to score doorbusters into a whole season of deals, so shoppers may feel less need to be out. Source
  • TransCanada: Over 24K gallons of oil recovered from spill

    Economic CTV News
    AMHERST, S.D. -- TransCanada Corp. says it has recovered more than 24,000 gallons of oil from the site of a pipeline leak discovered last week in South Dakota. The company said 24,450 gallons of oil had been recovered as of Wednesday. Source
  • Aurora Cannabis buying greenhouse designer Larssen to push pot partnership plans

    Economic CBC News
    Aurora Cannabis Inc. says it intends to use its ownership of greenhouse design firm Larssen Ltd. to pressure other cannabis producers to enter partnerships that will further its aggressive growth plans. In a news release, the Alberta-based cannabis producer said Larssen is involved with more than 15 cannabis industry clients globally, including five Canadian licensed producers, but the Canadian deals will be reassessed once the buyout announced Thursday is completed. Source