In November, the business opening rate rose 0.2 percentage points to 5.0% after holding relatively steady at 4.8% over the previous two months. The opening rate was 0.3 percentage points above its 2015-to-2019 historical average of 4.7%. The business closure rate edged up 0.1 percentage points for a second consecutive month and settled at 5.0% in November 2024. The closure rate was 0.4 percentage points above its historical average, according to a report released Monday by Statistics Canada.
In November, the number of active businesses dropped by 0.1% (-528 businesses) for a second consecutive month. Whereas business insolvency filings were relatively unchanged during the month (from 468 in October to 465), payroll employment dropped by 0.3% and real gross domestic product (-0.2%) posted its largest decline since December 2023, explained the federal agency.
“With the exception of the retail trade sector (-32 business openings compared with October; 2.4% negative contribution to the increase in the business sector openings), the increase in business openings was widespread across sectors in November 2024. Transportation and warehousing (+328; 24.4% contribution) led the growth in the business sector openings, followed by health care and social assistance (+167; 12.4% contribution) and accommodation and food services (+162; 12.1%),” said Statistics Canada.
“In November, business closures increased in all sectors except arts, entertainment and recreation (-18 business closures compared with October; 0.8% negative contribution to the increase in business sector closures). The increase in the business sector closures was driven by health care and social assistance (+607; 27.1% contribution). It was followed by accommodation and food services (+342; 15.3% contribution) and other services (except public administration) (+266; 11.9% contribution).”
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