In April, the business closure rate edged down 0.1 percentage points to 4.7%, after edging up 0.1 percentage points the previous month. The opening rate held steady at 4.8% in April after posting a 0.1 percentage point increase in March. Both the opening and the closure rates have been relatively stable in 2025, oscillating between 4.7% and 4.8%, according to a report released Monday by Statistics Canada.
The number of active businesses increased slightly by 0.1% (+644 businesses) in April as the number of business closures was lower than the number of openings. In the same month, payroll employment was little changed, real gross domestic product edged down 0.1% and business insolvency filings rose from 444 in March to 462 in April, said the federal agency.
“The number of active businesses changed little in most sectors in April. The slight increase in the overall number of active businesses was mainly driven by health care and social assistance (+398 active businesses compared with March; 78.5% contribution to the increase in active businesses) and accommodation and food services (+205; 40.4%). These increases were partly offset by slight declines in many sectors,” it said.
“While overall business activity in less trade-exposed sectors remained relatively stable from January 2024 to April 2025, sectors dependent on US demand such as mining, quarrying, and oil and gas extraction, and manufacturing experienced a sharper decline. From January 2024 to April 2025, the number of active businesses declined by 1.9% in sectors dependent on US demand, compared with a decline of 0.7% in other sectors. Although the decline in sectors dependent on US demand began before the trade tensions between Canada and the United States, suggesting that other factors such as shifting global demand or domestic industry dynamics could also be at play, the continued decline into 2025 may reflect added pressures from the evolving trade environment.”
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024 and 2025.
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