Fears of a pending recession and ongoing labour market challenges have resulted in a decline in business confidence across Ontario.
The Ontario Chamber of Commerce (OCC) released its seventh annual Ontario Economic Report on Wednesday, and it says business owners aren't very confident in the economy.
OCC President and CEO Rocco Rossi said current challenges with inflation and labour shortages are leading to failing business confidence.
"Only 16 percent of organizations surveyed have confidence in the economy," said Rossi. "This is down 29 percent from last year. Promisingly, most businesses feel confident they can withstand these headwinds and continue to grow in the year ahead."
Most employers have cited labour shortages as a downside to their operations, along with 87 per cent of Ontario's large businesses. The report says these shortages are most acute in the education, construction, food service, and hospitality sectors.
Despite the low confidence in the economy, 53 per cent of the businesses surveyed said they are encouraged by the growth potential of their operations and that low unemployment rates and population growth will help keep consumer spending up.
Rakesh Naidu, president of the Windsor-Essex Regional Chamber of Commerce, is aware of the challenges but is still optimistic about the future of regional business.
"Members of the Windsor-Essex Regional Chamber of Commerce continue to show their strength and resilience in the face of economic challenges," said Naidu. "Labour shortages and rising costs continue to remain top of mind as they continue to work towards recovery and growth. Addressing these challenges will be paramount to improving business confidence across Windsor-Essex."
The report also uncovered gaps in addressing concerns about mental wellness in the workplace, climate action, and diversity.
The 2023 Ontario Economic Report can be read in its entirety on the OCC's official website.
