In December, the business opening rate dropped 0.2 percentage points to 4.8%, following a 0.5 percentage point increase in the previous month. The business closure rate held at 4.8% in December, after a slight decline of 0.1 percentage points in November. In December, the opening rate was 0.1 percentage points above its 2015-to-2019 historical average, whereas the closure rate was 0.2 percentage points higher than its historical average, reported Statistics Canada on Monday.
“The decline in the business opening rate in December was largely driven by a 0.2 percentage point decrease in the reopening rate (to 3.2%), as the entry rate held relatively steady at 1.6%. While the reopening rate was 0.3 percentage points above its historical average, the entry rate was 0.2 percentage points below its historical average,” said Statistics Canada.
“In December, the change in the number of active businesses varied across sectors. The decrease in the overall number of active businesses was driven by construction (-184 businesses compared with November, making a 62.6% contribution to the decline in the overall number of active businesses). It was followed by professional, scientific and technical services (-147 businesses; 50.0% contribution); real estate and rental and leasing (-139 businesses; 47.3% contribution); and manufacturing (-134 businesses; 45.6% contribution).
“The decrease in the overall number of active businesses in December was largely mitigated by increases in health care and social assistance (+289 businesses, accounting for a 98.3% negative contribution); retail trade (+125 businesses; 42.5% negative contribution); and finance and insurance, and management of companies and enterprises (+120 businesses; 40.8% negative contribution).”
The report said business activity in sectors less exposed to trade remained relatively stable from January 2024 to December 2025, while it declined more noticeably in sectors dependent on US demand, such as the mining, quarrying, and oil and gas extraction sector and the manufacturing sector. Over this period, the number of active businesses fell by 2.9% in sectors dependent on US demand, compared with 0.7% in other sectors.
The gap between the two groups widened over time, becoming more pronounced in 2025, as the number of active businesses in sectors dependent on US demand continued to decline, while that in other sectors fluctuated closer to its January 2024 level. The downturn 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, may also be at play. However, the continued decline through 2025 may reflect additional pressures associated with the evolving trade environment, noted the report.
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, 2025 and 2026.
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