Canadian businesses remain pressured but most will retain jobs
More than two fifths of businesses said they cannot take on more debt, nearly one fifth expect to raise prices, and 5% are actively considering closure or bankruptcy.
The poll, conducted between mid-September and late October, revealed that more than one third of businesses had laid off at least one employee during the pandemic, with almost two thirds of those having shed at least half of their workforce. However, around half of those firms had since re-hired 50% or more.
Just 10% of respondents are expecting to have fewer staff in three months with 74% planning to retain current levels.
Debt and liquidity
With around one third of businesses reporting reduced income of at least 30% year-over-year since August, a similar share said they are not sure how long they can continue if income does not pick up without considering lay-offs, closure, or bankruptcy. For 17%, they believe they have just 6 months.
Those businesses in arts and recreation, food and accommodation remain the most impacted as a result of the pandemic. They were also more likely to be pessimistic about revenues in the months ahead.