The Top Challenge for BC Business?
Attracting and Retaining Skilled Labour
CPABC Business Outlook Survey reveals housing prices and cost of living are
the primary reasons why BC businesses can’t attract and retain employees
Economic outlook – in BC, in Canada, and globally
Survey respondents were optimistic about BC’s economy in 2015 (as they were in 2014), with
42% rating it as “good” or “excellent.” Interestingly, respondents residing in the Mainland/
Southwest (56%) and Vancouver Island (54%) Development Regions were more likely to have
negative feelings about the BC economy than members living in more rural regions of the
province (47%).
Only one-fifth of respondents described
Canada’s economy as “good,” and one-third
said they believe BC’s economy will grow
faster than the Canadian average over the
next two years. Still, the percentages of those
expecting improvement for BC and Canada
over the next two years are close, at 25% and
24%, respectively. The two-year forecast for
international markets was mixed—43% of
respondents said they expect the US economy
to improve, 41% expect the Asian economy
to improve, and 25% expect the European
economy to improve.
C-suite members were more likely to hold
positive views about the BC (51%) and US
(59%) economies, and to expect improvement,
at 29% and 54%, respectively.
Challenges to business success
As was the case in 2014, the ability to attract
and retain high-calibre employees and/or
skilled labour was ranked as the number one
challenge to business success in BC, with
nearly 73% of 2015 respondents identifying
it as an issue. Ranked next in terms of importance were the ability to raise capital
(62%), consumer confidence levels (also 62%),
and government red tape (61%).
Among those who saw recruitment and
retention as BC’s biggest challenge to business
success, the high cost of living in BC, low
wages, and high housing costs were cited as the
top contributing factors. Not surprisingly,
respondents living in the Mainland/Southwest
Development Region were more likely to
cite the cost of living and the cost of housing
as the primary challenges to businesses
when it comes to retaining skilled labour.
Consistent with past years’ results, respondents identified housing prices (78%), commodity prices (74%), the value of the
Canadian versus US dollar (72%), and the
Canadian economic climate (69%) as the
28 CPABC in Focus • Nov/Dec 2015
Olivier Le Moal/iStock/Thinkstock
E
ach year, CPABC conducts the Business Outlook Survey to measure members’ perceptions of the current and future economic climates in BC, in Canada, and globally. The
survey also asks members to share their thoughts on the challenges for business success
and the performance of government in supporting BC businesses. Responses are analyzed by
region, and a year-to-year comparison is made. Newly added to the process this year was the
analysis of results from members in executive management roles (the “C-suite”). A summary of
the 2015 survey results follows.