NEWS RELEASE
TIMMINS CHAMBER OF COMMERCE
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(Jan. 28), the Timmins and Ontario Chamber of Commerce (OCC) released the fifth annual Ontario Economic Report (OER), providing the latest data on Ontario's economy and business confidence, highlighting the unprecedented year that was 2020 and the unpredictability that lies in the year ahead. Public policy makers looking at strategies to support Ontario's long-term economic recovery will benefit from the findings outlined in the OCC's flagship annual report.
With a total of 77 Timmins business respondents contributing to the data, the 2021 OER uncovers the disproportionate impact of COVID-19 on small businesses and entrepreneurs as well as specific regions, sectors, and demographics, highlighting the significant vulnerabilities and opportunities Ontario will face in the year ahead.
This is a stark reality compared to the results found in the Timmins Chamber's Business Confidence Report that was released in Oct. 2019. At the time, the report indicated a sharp uptick in economic optimism among small business owners and presented clear signs that the local economy was in good health-- citing economic success on small business owners' ability to build capital, hire workers, and grow their companies at scale. Now, as outlined in today's report launch, the outlook is much more bleak.
"Small businesses are the backbone of our economy and lifeblood of Timmins, our region, and our Province. Our small business members are the least confident in the Province's economy, as they continue to face unprecedented liquidity constraints, increased costs, and reduced revenues. We know the leadership and support these businesses provide to our community and this is cause for concern," said Melanie Verreault, President of The Chamber.
This year's OER also reveals the hardest-hit sectors were those requiring considerable face-to-face contact, namely: accommodation and food services; arts, entertainment, and recreation; and retail. Findings indicate that employment growth declined throughout the Province, with women, lower-income, racialized, new immigrants, and younger Ontarians suffering the biggest job losses. Every region of the Province felt the impacts of the recession, though some considerably more than others.
The report's co-author, Daniel Safayeni, Acting Vice President of Policy at the OCC, added: "No business, region, sector, or demographic should be left behind in the pursuit of economic recovery and growth. Support programs and pro-growth policies should be targeted towards those experiencing the most pronounced challenges. A focus on reskilling as well as widespread access to broadband infrastructure and capital will be necessary to the revival of small business and entrepreneurship as well as an inclusive and robust economic recovery.
Key highlights from the OER include:
- Northeastern Ontario cited a 12 percent decrease in overall business confidence, with 58 percent of respondents indicating shrinkage in organizational capacity.
- Ontario witnessed a steep decline in real GDP growth (-5.6 percent) in 2020 but is projected to see a moderate rebound of 4.8 percent in 2021, fuelled largely in part by expectations for vaccination rollout and the eventual re-opening of the economy.
- In 2020, only 21 percent of survey respondents expressed confidence in Ontario's economic outlook. Less than half of Ontario businesses (48 percent) are confident in their own organizations' outlook over the next year.
- Small businesses are more pessimistic about Ontario's outlook than larger ones. Only 20 percent of small businesses expressed confidence in Ontario's economy, compared to 27 percent of medium and large businesses.
- The majority (58 percent) of survey respondents said their organizations shrank between April and September, while only 17 percent grew.
- Employment growth declined throughout the Province in 2020, with 47 percent of organizations indicating they let employees go due to COVID-19.
- Sectors most negatively impacted by the crisis included: accommodation and food services; arts, entertainment, and recreation; and retail. Businesses in these sectors were among those most pessimistic about the economic outlook and most likely to have shrunk and let go of staff in 2020.
- Businesses' priorities for governments during economic recovery included enhancing access to capital, reforming business taxes, encouraging Ontarians to buy local, and investing in broadband infrastructure.
"The prolonged nature of the crisis, rising case counts, and uncertainty around vaccine deployment timelines have taken a toll on employers and Ontarians across the Province. Yet, Ontario has a proven track record of resilience and recovery. Our long-term prosperity will depend on all levels of government, business, chambers of commerce and boards of trade working together towards economic recovery," added Rocco Rossi, President and CEO of the Ontario Chamber of Commerce.
The Ontario Economic Report was made possible by support from Hydro One. To read the report, click here.
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