Monthly estimates of business openings and closures, July 2024

Released: 2024-10-28

In July, the business opening rate edged down 0.1 percentage points for the second consecutive month to settle at 4.5%. The opening rate was 0.2 percentage points below its 2015-to-2019 monthly historical average. The business closure rate dropped by 0.3 percentage points in July 2024 to 4.5% and was 0.1 percentage points below its monthly historical average.

As the opening rate was equal to the closure rate, the number of active businesses was relatively unchanged in July (0.0% growth rate compared with June; +85 businesses), following a 0.2% decline in June. In fact, the number of active businesses has not posted a positive growth rate since January. Both payroll employment and real gross domestic product rose by 0.2% in July.

The decline in business closures was widespread across sectors in July. The decrease in closures in the business sector was led by the construction sector (-440 closures compared with June; 21.5% contribution to the decrease in business sector closures). It was followed by health care and social assistance (-306; 15.0%) and professional, scientific and technical services (-200; 9.8%). The number of business insolvency filings edged down from 460 in June to 452 in July. Business insolvency filings declined or remained relatively unchanged in most sectors.

Business openings dropped or changed little in most sectors in July. Construction (-186 openings compared with June; 45.5% contribution to the decrease in business sector openings) drove the decline in business sector openings. It was followed by professional and technical services (-96; 23.5%) and retail trade (-83; 20.3%). The decrease in business sector openings was slightly mitigated by the increase in openings in health care and social assistance (+80; -19.6%). The sector's negative contribution indicates that its monthly change was in the opposite direction of the overall business sector's monthly variation.

In July, the numbers of business openings and business closures declined or remained relatively unchanged in all provinces and territories compared with June. The national decline in business openings and closures was driven by Ontario, Alberta and British Columbia. It's worth noting the 16.8% decrease in the number of business openings (-105 businesses) in Newfoundland and Labrador from June to July, while the number of business closures remained relatively unchanged. This was the largest decline in business openings in the province since January 2021. As a reminder, an evacuation order took place in Newfoundland and Labrador due to wildfires, ordered on July 12, 2024, and lifted on July 22.

Chart 1 
Number of active businesses, business sector, January 2023 to July 2024, seasonally adjusted data

Chart 2 
Percent contribution of sectors to the decrease in openings and the increase in closures, June to July 2024, seasonally adjusted data

Contact information

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