Is Drop in Business Openings Temporary or Permanent? - Daily Commercial News

The number of business openings in Canada fell by -2.2% in June. This was their largest one-month decline since the Covid-fueled drop of -2.8% in May 2020.

It is worth noting that a sharp drop in openings was accompanied by a -0.3% decline in payroll employment and little change in ‘real’ gross national product , due to a falloff in goods production that was just offset by a +0.1% increase in services-producing output., business closings in Canada were up by +4.4% in the first half of 2024. The bulk of this increase resulted from a +63.0% rise in Ontario, together with gains of +23.9% in Alberta and +11.2% in British Columbia.

Over the past 12 months, among Canada’s 19 major industries, the number of active businesses rose in just three, led by health care and social assistance , and followed at a great distance by education services and utilities . Across the country, two-thirds of the decline in active construction companies occurred in Ontario where, over the past 12 months, a -18% fall in the number of business openings has been accompanied by a +19.1% rise in business closings.

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