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SOURCE CPA Canada
TORONTO, Sept. 22, 2013 /CNW/ - 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
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."
The CPA Canada Business Monitor is issued quarterly, based on a survey commissioned by CPA Canada. The report draws upon business insights of
professional accountants in leadership positions in privately and
publicly held companies.
For the Q3 2013 study, emailed surveys were completed by 200 of 4,245
identified by CPA Canada as holding senior positions (CFOs, CEOs, COOs
and other senior executive roles). The response rate was 4.7 per cent,
with a margin of error associated with this type of study at ±6.9 per
cent, with a confidence level of 95 per cent. The survey was conducted
by Harris/Decima Inc. from August 7 - September 3, 2013. A background
document is available online at www.cica.ca/businessmonitor.
About CPA Canada
CPA Canada is the national organization representing the Chartered
Professional Accountant (CPA) profession in Canada. The Canadian
Institute of Chartered Accountants (CICA) and The Society of Management
Accountants of Canada (CMA Canada) created the organization on January
1, 2013, to support unification of the Canadian accounting profession
and provide services to all CPAs. CPA Canada also is responsible for
providing services to CAs and CMAs on behalf of CICA and CMA Canada.
CPA Canada and the Certified General Accountants Association of Canada
(CGA-Canada) also have agreed on a process to integrate their
operations so that CPA Canada will be able to effectively support the
CGA members in provinces participating in unification. This process is
subject to CGA member approval. CPAs will serve the public interest
across all sectors of the economy with integrity, sound ethical
practices, disciplined regulation and proven strategic management and
financial expertise. Accounting bodies representing almost 90 per cent
of Canada's professional accountants are committed to unification or
have already merged under the CPA banner.
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