Québec businesses’ situation and expectations are better in the second quarter of 2022 than in the first
Notice of release
Québec, August 31, 2022. – The Institut de la statistique du Québec released today an analysis entitled Situation et attentes des entreprises du Québec pour le deuxième trimestre de 2022, which helps understand the situation and expectations of businesses regarding inflation, the labour and supply chain obstacles they are facing, their energy expenses, their profitability, the sale price of the goods and services they offer, their number of employees and their business strategies.
Overall, businesses were more optimistic in the second quarter of 2022 than in the first: more than three quarters (76.5%) had better (30.3%) or the same (46.2%) future prospects compared to before the pandemic.
The cash flow status of businesses was more stable than in the previous quarter.
The main obstacles identified in the previous quarters were still present:
- Labour shortage
- Difficulty recruiting skilled employees
- Difficulty retaining skilled employees
- Rising cost of inputs
- Difficulty acquiring inputs, products or supplies from Canada and abroad
- Difficulty maintaining inventory levels
- Rising transportation and insurance costs
However, the proportion of businesses affected by these obstacles has decreased, and new concerns have emerged:
- rising energy costs (45.9%) in the next three months;
- impact of inflation on wage increases demanded by employees (55.8%) in the coming year.
Businesses expect the labour shortage to have numerous repercussions over the next three months:
- more hours worked by management and existing staff;
- a slowdown in business growth;
- hiring of less skilled candidates;
- delays in fulfilling customer orders.
To overcome supply chain-related obstacles, businesses are considering:
- partnering with new suppliers;
- replacing inputs, products or supplies with other inputs, products or supplies;
- working with suppliers to increase distribution speed in the coming year.
With respect to profitability and other performance indicators, businesses’ expectations are more or less identical to those expressed in the previous quarter:
- 76.0% expect to retain the same number of employees
- 57.7% do not anticipate any changes in profitability
- 49.8% expect their operating expenses to increase
- 45.6% expect to raise their sale prices
- 42.8% anticipate the same number of job vacancies
The analysis produced by the Institut de la statistique du Québec is based on Québec data from the Canadian Survey on Business Conditions, second quarter 2022 carried out by Statistics Canada from April 1 to May 6, 2022. This edition of the survey is based on a probabilistic approach and only covers businesses with employees. For Québec, the results are based on the responses of 2,103 businesses.
The Institut de la statistique du Québec produces, analyzes and disseminates official, objective and quality statistical information on various aspects of Québec society. It is responsible for conducting all statistical surveys of general interest. The relevance of its work makes it a strategic ally for decision makers and all those wishing to learn more about Québec.
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