Slumping oil prices are making an impact on hiring and investing according to the Bank of Canada’s Business Outlook Survey.
It says firms in the Prairies and in the energy supply chain are being severely affected by oil prices, which in turn is hurting other industries.
The Outlook shows a clear decline in sales and profits for these companies which is causing impact on spending and hiring. 20 per cent of firms report that they are expecting fewer staff on hand over the next year.
Another 40 per cent say the number won’t change at all during this time. In terms of labour shortages, the Outlook shows that is improving in comparison to last year.
This is especially for firms who have heavy ties to the energy sector. However, many are benefiting from a strong outlook in the U.S. and more competition from a weaker Canadian dollar.
