Businesses in Calgary have been shutting down or moving at a quick pace because of the stagnant economy which is now exacting a heavy toll. As per numbers from the third quarter, around 2000 Calgary businesses have closed doors this summer with 1,785 moving over a three month period.
Over the initial nine months of 2016, greater than 11000 businesses were either moved or shut down. More than 5,500 have already shut down this year. This is around the number of closures they usually see in an entire year. The city is certainly going to eclipse the number by the end of the year.
These are the most challenging times economically that Calgary has seen in the current generation. The business climate, in general, isn’t too good presently and businesses are facing a lot of challenges. Many of them are being forced to alter balance sheets and meet the minimum hikes in wages. They are also worried about the carbon tax looming over Alberta as well as WCB premiums and property taxes.
When everything is layered, it can become quite difficult. People are hopefully looking to the new government for help. But even as the number of moves and closures attain new heights; there is a reciprocal boom in the number of startups that are coming up too. Many of them have had derailed careers in Alberta before setting fresh entrepreneurial goals.
As per the city, in the first 9 months of 2016, around 6,176 new licenses were taken, and this gives a little hope to business leaders. There are a number of technical people such as engineers who are in completely different lines of work now such as brewing.
But, even though businesses and those who have lost their jobs are trying to reinvent themselves in this troubled economy, the loss of established businesses, even when they are replaced with fresh opportunities, fuels lesser jobs.