There has been up and down financial news over the past month. The good news is 43,000 jobs were created in January according to figures released by Stats Canada this past Friday.
The bad news is jobs are still scare even as the economy recovers. Part-time employment formed the lion’s share of January’s increase, with 41,500 new positions. Though job losses have eased, there are few signs employers are confident enough to hire additional full-time staff just yet.
According to a recent article in The Globe and Mail, this past recession has eliminated 323,000 jobs. The Canadian Federation of Independent Business released a survey last week reporting 71% of smaller businesses don’t see a change in their full-time employment levels in the coming months; 14% plan to increase their head count, while 15% intend to decrease staffing, Another survey by Towers Watson conducted last month showed 4 in 10 employers are planning job cuts.
When will employers start hiring? Job growth can be sluggish as economies emerge from a recession and sales pick-up again. Employers count on existing staff to work overtime before deciding on hiring additional staff. Or, they go the route of hiring part-time staff, as we have seen with January’s job figures.
From our end of the business we’re seeing less sales transactions into the U.S. as more companies are finding it harder to sell goods to American companies. The U.S. trade imbalance is growing and with it creeping protectionism to secure U.S. jobs.
Finding creative ways to stay afloat on the heels of a financial downturn is never easy for any business, but for small businesses it’s often more challenging when credit dries up.
Any company that has struggled through past recessions knows that capital gets scarce. Right now many companies are wondering when we’re going to get help with the next round of financing. Banks certainly aren’t doing their part to ease the burden of struggling smaller businesses as they simply consider them just too risky.
Regardless of how growing companies are able to come up with cash – whether through banks, personal loans, or even re-mortgaged a home – it’s important to spend it wisely.
Many businesses today reduce their financial exposure and count on an extra layer of protection by insuring their accounts against bad debt through Vericheque Account Receivables Protection Plan. It’s certainly a very good defensive move for companies looking to stay solvent over the long run.