Business and employment dynamics data at the national level, 2016
In 2016, the entry rate for new private-sector employer businesses declined for the third consecutive year, down 0.2 percentage points from 2015 to 12.2%. The exit rate for private-sector employer businesses rose 0.5 percentage points in 2016 to 11.9%, up from 11.4% in 2015.
Private sector net employment growth was 0.7% in 2016, slightly lower than the average of 1.4% from 2010 to 2015. Net employment growth is a measure of the total change in the number of jobs among private sector employers. Net employment growth arises from changes in four sub-components: employment creation by entrants (+1.4%), employment creation by growing incumbents (+7.9%), employment destruction by exits (-1.2%) and employment destruction by declining incumbents (-7.4%). As was the case in all years in the post-2000 period, the majority of the churn or turnover that occurred in private sector employment in 2016 was accounted for by the expansion and contraction of incumbent enterprises.
Final annual estimates of business and employment dynamics in the private sector at the national level, broken down by North American Industrial Classification System industry or by firm size class and drawn from the Longitudinal Employment Analysis Program, are now available for 2016. The new estimates for 2016 are being added to already existing data tables that contain annual estimates going back to 2001, and complement experimental estimates, which are available on a quarterly basis.
For experimental quarterly estimates, see the Daily release Experimental quarterly estimates of business entry and exit, fourth quarter 2017.
For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; STATCAN.infostats-infostats.STATCAN@canada.ca) or Media Relations (613-951-4636; STATCAN.mediahotline-ligneinfomedias.STATCAN@canada.ca).
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