In November, the business opening rate increased by 0.4 percentage points to 5.0%, following a 0.2 percentage point decline in the previous month. The opening rate was 0.3 percentage points above its 2015-to-2019 historical average, according to a report released Tuesday by Statistics Canada.
In November, sectors showed a mix of increases and decreases in their number of active businesses. Health care and social assistance (+375) recorded the highest increase, followed by accommodation and food services (+238). In contrast, professional, scientific and technical services (-212) experienced the largest decline, followed by retail trade (-207), added the federal agency.
This opening rate rise was driven by a 0.5 percentage point increase in the re-opening rate to reach 3.4% in November. Meanwhile, both the entry and closure rates declined by about 0.1 percentage points, it said.
“The business entry rate edged down by 0.1 percentage points to 1.6% in November, after showing no change in the previous month. Similarly, the business closure rate fell 0.1 percentage points to 4.8%, following a 0.2 percentage point increase in the previous month. The business entry rate was 0.2 percentage points below its historical average, while the business closure rate was 0.2 percentage points above its historical average,” explained Statistics Canada.
“The number of active businesses rose by 0.1% (+928 businesses) in November, mainly because of an increase in the number of business re-openings. In the same month, business insolvency filings fell by 17.9% (429 in October compared with 356 in November), payroll employment declined by 0.1% and real gross domestic product was essentially unchanged.”
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