TORONTO, September 22, 2013 – Optimism about the Canadian
economy is up sharply among executive professional accountants climbing
to its highest level since the second quarter of 2011, according to the
latest CPA Canada Business Monitor (Q3 2013).
Thirty-seven per
cent of the respondents surveyed are optimistic about how the national
economy will
perform over the next 12 months. In both the first and
second quarters of this year, only 26 per cent were optimistic.
Fifty-six per cent of those surveyed in the third quarter of 2013 are
neutral and just under 10 per cent are pessimistic.
While there
have been wide spread fluctuations since the quarterly surveys began,
economic optimism is now at its highest level since Q2 2011 when 43 per
cent of the respondents felt good about the prospects for the Canadian
economy. The highest level of optimism for the on-going research is 67
per cent, recorded in the second and third quarters of 2007.
“The
increase in economic optimism is certainly positive but it must be put
into perspective,” says Kevin Dancey, FCPA, FCA, president and CEO,
Chartered Professional Accountants of Canada (CPA Canada). “While very
few of the respondents are pessimistic, the majority are still not
prepared to express optimism. Hopefully, further upswings in optimism
lie ahead.”
The state of the U.S. economy is viewed as the biggest
challenge to economic growth by survey respondents (43 per cent)
followed by uncertainty surrounding the Canadian economy (18 per cent).
Company
optimism is up slightly from last quarter. Fifty per cent are
optimistic about how their company will perform over the next 12 months
compared with 47 per cent the previous quarter.
No significant
changes are emerging in projections for revenues and profits with the
majority of respondents still anticipating increases. Sixty-four per
cent of respondents expect their revenues to grow in the next year and
59 per cent are forecasting an increase in profits.
Employment Projections Down
Despite
an increase in economic optimism, the third quarter survey found that
fewer respondents are forecasting an increase in employee numbers at
their companies. Thirty-four per cent of the respondents expect employee
numbers at their company to increase in the next 12 months, down from
40 per cent the previous quarter. Forty-seven per cent of the
respondents anticipate no change and 19 per cent expect a drop.
Looking
forward, some hiring challenges may be looming. Two-thirds of those
surveyed believe that Canada does not have enough skilled workers and
professionals to fill certain positions. In addition, roughly
seven-in-ten (71 per cent) anticipate that their organization will have
difficulty filling a skilled position over the next two years: 39 per
cent referenced skilled trades, 22 per cent middle management, 15 per
cent professional positions, 14 per cent senior management and 11 per
cent stated other. More than one response could be provided. Twenty-nine
per cent of those surveyed do not anticipate difficulty in filling any
types of skilled positions.
When asked what steps their company
takes to hire skilled workers, asking employees to refer potential
candidates was the number one response (56 per cent). Using recruiting
firms to source talent within the province was next at 49 per cent.
“It
makes sense for organizations to seek assistance from their employees,”
says Dancey. “Employees understand the operation and recognize that it
is their reputation on the line when recommending someone for a
position.”