Labour shortages and supply chain disruptions remain top concerns for Ontario businesses in 2022.
The latest Ontario Economic Report by the Ontario Chamber of Commerce sites those as the biggest concerns for a poor outlook on the province's economy over the next year.
Overall, only 29 per cent of businesses were confident in Ontario's economic outlook. That is an increase from 2020 when 21 per cent of businesses replied they were confident in the economic outlook.
Businesses bordering the United States are among the most pessimistic in the province. Respondents in Windsor, Sarnia, Hamilton, and Niagara all noted sluggish travel and tourism and cross-border supply chain disruptions as cause for concern.
“Our small business members in Windsor-Essex have proven their strength and resilience over the past two years. Business confidence is rising across the province, but for many, the additional strain on operations as a result of new variants and additional restrictions continues to dampen their recovery,” said President and CEO of the Windsor-Essex Regional Chamber of Commerce Rakesh Naidu.
The Ontario Chamber of Commerce report indicates the region can expect to see moderate to strong increases in employment driven by pent-up demand and easing of supply chain backlogs.
“We are seeing a domino effect of structural issues. Jobs are going unfilled, demand is outpacing capacity, and these issues are driving up prices for consumers and uncertainty for businesses,” said the report’s co-author, Claudia Dessanti, Senior Manager, Policy, Ontario Chamber of Commerce. “Two years into the pandemic, there is light at the end of the tunnel, but we need a long-term plan that will provide stability and lay the groundwork for economic growth.”
