Long-term small business confidence in Saskatchewan opened this year at 52 points, which is the second lowest in Canada according to the monthly Business Barometer from CFIB.

Confidence levels slipped slightly in December, mainly due to ongoing pressure from weak consumer demand, labour shortages, rising costs, and broader economic uncertainty.

55 per cent of small firms said the top constraint to growth in the province is weak consumer demand. Labour shortages are also a concern, with hiring intentions at a negative. Only 9 per cent of businesses in the province plan to hire in the coming months, with 14 per cent expecting to cut staff.

Cost pressures are also elevated, with 76 per cent of small businesses struggling with tax and regulatory costs, 63 per cent struggling with insurance costs and a record 57 per cent saying rising input costs are restraining operations.

Average wage and price increases are steady at 2.1 and 2.6 per cent respectively. CFIB says this suggests businesses are limited in their ability to pass costs on to consumers.