The government shutdown has had drastic impacts on many businesses, including those that are not federally funded. Businesses have been closed due to the lack of employees and services provided by the federal government. Some companies have even lost money because they relied too heavily on COVID for relief from vaccine mandates. As a result, some companies are seeking alternative methods to meet these requirements, such as hiring outside contractors or looking into organic produce suppliers in order to continue operating without interruption.
However, the most significant consequence of the shutdown is how it will impact upcoming reports. A large number of reports are being postponed or canceled altogether in order to reduce costs associated with staff pay and support. Statistics Canada has suspended collection of information for all future reports. As a result, this month’s Consumer Price Index (CPI) report has been postponed until November. The CPI is expected to show an increase in food prices of 0.8 percent, which is the same as last month’s report on CPI without food and energy costs.
The Canadian Labour Congress has also suspended its monthly reports on social plans for October. This includes pay data from companies under federal jurisdiction that provide over 200 employees. The delayed information will affect the 2015 wage increase of 0.2 percent and the effect of collective bargaining agreements covering 5,000 employees made by private companies who do not need to report to federal labour boards.
The Federal Mediation and Conciliation Service (FMCS) is cancelling its October meeting due to a lack of government funding. The last time a meeting was cancelled in this way was in the mid-1990s due to a government shutdown. This month’s meeting would have been held in Grand Junction, Colorado and would have provided insight into how many changes were needed to the labour news production industry before it could be considered truly “good”.
October reports from the Bureau of Labor Statistics and the US Department of Labor were postponed as well. The US Unemployment Rate is expected to remain at 5.0 percent for September, while the number of initial unemployment claims was reported as 258,000 new claims – an increase from last month’s 254,000. October reports on labour productivity and unit labor costs were also postponed until November.
Of the remaining released reports, some were postponed while others became moot due to the shutdown. October reports that will be moved to November include: nonfarm payrolls (Bureau of Labor Statistics); unemployment insurance claims (Department of Labor); Wholesale Trade (US Department of Commerce), Durable Goods Orders (US Census Bureau) and Existing Home Sales (US Census Bureau). October reports that will not be released included: New Residential Construction (US Census Bureau); Housing Starts (US Department of Commerce) and Building Permits (US Census Bureau).
The Federal Reserve Bank of Philadelphia is cancelling its Manufacturing Outlook Survey for November. The survey results were to appear in the Fed’s “Beige Book”, but will now be included in the December release. The survey was intended to provide insight into how factory owners and managers expect economic conditions for their companies to develop over the next six months, as well as any possible impacts from the shutdown and whether they could affect their business activity.