She advocates for a departure from these “blunt tools” towards more effective strategies that address the rising cost of living without placing undue stress on small businesses.
The report details the projected economic impact across various provinces:
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Newfoundland and Labrador could see costs of $943m, affecting 10,653 small businesses.
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Prince Edward Island might face $332m in additional wages, putting 3,100 small businesses at risk.
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In Nova Scotia, the impact could reach $1.933bn, with 14,048 small businesses potentially becoming unprofitable.
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New Brunswick’s figures are similar, with $1.543bn and 12,519 small businesses affected.
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Quebec and Ontario, with their larger economies, could face the most significant impacts: $10.255bn and $16.741m respectively, threatening the viability of 141,927 and 200,387 small businesses.
The report also highlights the broader economic effects of recent minimum wage increases, noting that 60 percent of small businesses had to raise wages for other employees, and 59 percent increased their prices, contributing to inflation.
Additionally, 31 percent of small businesses reduced hiring, and 25 percent cut jobs, particularly among young and unskilled workers.
Jairo Yunis, CFIB’s director for BC and western economic policy, suggests a more holistic approach to tackling Canada’s cost of living crisis. He recommends stabilizing essential costs like rent, food, and gas, alongside supporting workers and businesses through tax reductions.