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Business and employment dynamics data at the national level, 2017

Released: 2019-06-10

In 2017, the entry rate for new private-sector employer businesses increased 0.6 percentage points, from 12.2% in 2016 to 12.8% in 2017. The exit rate for private-sector employer businesses declined 0.5 percentage points in 2017 to 11.4%, down from 11.9% in 2016.

Private sector net employment growth was 1.5% in 2017, slightly higher than the average of 1.3% from 2001 to 2016. 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 (+1.5%), employment creation by growing incumbents (+8.2%), employment destruction by exits (-1.1%) and employment destruction by declining incumbents (-7.1%). As was the case in all years in the post-2000 period, the majority of the fluctuation or turnover that occurred in private sector employment in 2017 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 Industry Classification System industry or by firm size class and drawn from the Longitudinal Employment Analysis Program, are now available for 2017. The new estimates for 2017 are being added to existing data tables that contain annual estimates going back to 2001, and complement quarterly estimates.

  Note to readers

The private sector covers all industrial sectors except those primarily involved in educational services, health care and social assistance and public administration. It includes unclassified businesses.

The annual business and employment dynamics estimates and the quarterly estimates of business entry and exit are related, but present some differences. The annual estimates are based on the Longitudinal Employment Analysis Program (LEAP) which uses T4 records and statistical enterprises from the Business Register to form longitudinal firms. The quarterly estimates are based on payroll deduction files from the Survey of Employment, Payrolls and Hours. The sub-annual entry and exit rates from the payroll deduction files are benchmarked to the annual LEAP data prior to release.


For experimental quarterly estimates, see the Daily release "Experimental quarterly estimates of business entry and exit, fourth quarter 2018."

Contact information

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; or Media Relations (613-951-4636;

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