Both business openings and closures declined slightly in June, according to new data released by Statistics Canada.
The business opening rate edged down 0.1 percentage points to 4.7 per cent, after holding steady at 4.8 per cent for the previous three months. The closure rate also dipped 0.1 percentage points to 4.7 per cent, following a 0.2 percentage point increase in May.
Statistics Canada said the June opening rate matched the historical average from 2015 to 2019, while the closure rate was 0.1 percentage points above its historical norm.
The number of active businesses rose by 0.1 per cent, or 764 businesses, in June, as openings slightly outpaced closures. In the same month, payroll employment declined by 0.2 per cent, real gross domestic product edged down 0.1 per cent, and business insolvency filings increased by 7.3 per cent—from 386 in May to 414 in June.
“The number of business openings was relatively unchanged in most sectors in June,” the agency stated in its Monthly Estimates of Business Openings and Closures report.
The slight overall decline in openings was largely attributed to professional, scientific and technical services, which saw 182 fewer openings compared with May—accounting for 42.7 per cent of the overall drop. This was followed by declines in accommodation and food services (-81; 19.0 per cent contribution) and construction (-76; 17.8 per cent).
“The decline was mitigated by a slight increase in business openings in health care and social assistance (+93 business openings),” the agency said.
Closures remained relatively stable across all sectors. The overall decrease was mainly driven by retail trade, which recorded 90 fewer closures compared with May, contributing 28.2 per cent to the overall decline. Wholesale trade followed with 71 fewer closures (22.3 per cent contribution).
“Construction, as well as administrative and support, waste management and remediation services each contributed 17.2 per cent (-55 business closures) to the decline in the overall number of business closures,” Statistics Canada said.
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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