In 2006, 52% of businesses who responded to the Saskatchewan Chamber of Commerce’s annual Economic Outlook Survey increased their business revenue. This is a dramatic drop from the 72% of respondents reporting an increase in revenue at the end of 2005. In addition, 23% of respondents experienced a decrease in 2006 compare to only 9% in 2005. The drop was predictable since projections made by respondents at the end of 2005 indicated 2006 would see lower returns.

Optimism seems to be returning for 2007, with 60% of respondents projecting increases in their revenue, and 27% predicting revenue will remain the same.

“The fact that 60% of respondents are expecting to increase their business revenue in 2007 is very positive for the province,” said Chamber President Ralph Boychuk.

For 2007, investment projections are expected to increase, with 35% of respondents indicating they will increase investments in their operations and only 4% predicting a decrease. However, that is down significantly from the 2006 projection, when 46% of respondents indicated they would increase investments in their operations.

Last year 72% of respondents indicated that they expected wages in their company to increase in 2006. The average increase predicted was 2.07%; however the average actual increase in wages was 6.58%. For 2007, an astounding 90% of respondents are expecting wages and salaries in their company to increase and the average increase projected is 5.58%.

On the hiring front, 42% of respondents hired more staff in 2006 and slightly over two-thirds of these positions were full time. But, at the end of 2005, 52% of respondents predicted increasing the size of their staff in the coming year. Alarmingly, not only did fewer firms hire new staff but 35% of respondents decreased their staff size in 2006.

“The reason for the reduction in job creation is two-fold. First, the shortage of skilled labour in the province has left business in a position were jobs are being left unfilled because qualified employees cannot be found,” declared Boychuk. “In addition, the minimum wage hike in March and knowledge that another increase is just around the corner pushed a lot of businesses into making tough decisions about staffing.”