---
title: "BC small business confidence fell below neutral in October, with more employers planning staff cuts"
description: "The CFIB Business Barometer shows BC's 12-month outlook index dropped to 49.0 in October from 54.2 in September, and the share of businesses planning to reduce full-time staff rose to 19 per cent."
canonical_url: "https://voche.me/bc/provincial-2026/news/bc-small-business-confidence-october-2026"
last_updated: "2026-11-03T19:22:59.847Z"
---

BC small business confidence fell below neutral in October 2026, with more employers planning to cut staff than to hire, according to the Canadian Federation of Independent Business Business Barometer. Business in Vancouver reported the findings on November 3, citing Bryan Yu, chief economist at Central 1.

## What the barometer showed

The BC 12-month outlook index fell to 49.0 in October from 54.2 in September, dropping below the neutral mark of 50 for the first time since spring. The three-month index fell to 43.3 from 47.2.

Business in Vancouver reported that confidence was among the lowest of the large provinces and below the 60-to-65-point range that the CFIB associates with moderate economic growth.

## Hiring plans weakened

The share of BC businesses planning to reduce full-time staffing over the next three months rose to 19 per cent in October from 16 per cent in September, while the share planning to increase staff held at 15 per cent. Business in Vancouver reported that the widening gap reflects weak sales growth and financial pressure.

## Why businesses said demand was thin

Insufficient demand was the leading constraint on business growth, cited by 49 per cent of respondents. Skilled labour shortages were reported by 39 per cent, and 38 per cent cited limited working capital or cash flow.

Operating costs added to the pressure. Tax and regulatory costs were cited by 67 per cent of businesses, wage costs by 63 per cent, fuel costs by 57 per cent and insurance costs by 55 per cent.

Bryan Yu, chief economist at Central 1, told Business in Vancouver that US tariffs, higher borrowing costs and the provincial election call contributed to the weaker reading.

## Retail sales

BC retail sales rose on a seasonally adjusted basis in August 2026, reaching $10 billion, up 2.1 per cent from July and ahead of the national increase of 1.2 per cent. The gain reversed July's 1.8 per cent decline. On an unadjusted, inflation-adjusted basis, retail volumes declined 0.3 per cent year-over-year.

Gasoline station sales rose 15.3 per cent year-over-year to $1.1 billion. Food and beverage retailers fell 2.8 per cent to $2.1 billion. Clothing and accessories fell 1.1 per cent, the first decline of the year for that category.

## What comes next

Business in Vancouver reported that the consumer spending outlook remains subdued heading into year-end. With demand thin and costs high, BC businesses were cutting rather than adding jobs as of October. The CFIB Business Barometer is published monthly and tracks conditions across all provinces. Workers and employers can follow monthly updates at the CFIB's website.

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