Home Canada News Decline in Active Canadian Businesses in October, Amidst Challenges in Construction and Other Key Sectors

Decline in Active Canadian Businesses in October, Amidst Challenges in Construction and Other Key Sectors

by Immigration Team
0 comment
Decline in Active Canadian Businesses

As of October 2023, Canada experienced a slight reduction in its active businesses, marking a 0.2% decrease from the previous month. This translates to 1,986 fewer businesses, marking the third decline in four months. This downturn primarily stems from a 0.4% drop in new business openings, now at 4.2%, while closure rates stayed consistent at 4.8%.

The construction sector, accounting for 21.6% of the decrease, led this downturn with 1,085 fewer openings. This was followed by significant declines in transportation and warehousing (17.4%; 876 fewer openings) and professional, scientific, and technical services (13.9%; 698 fewer openings).

Retail trade, construction, and transportation and warehousing not only saw the highest increases in business closures but also showed the largest overall decrease in active businesses. Specifically, retail trade experienced an increase of 157 closures, construction 105, and transportation and warehousing 93, compared to the previous month.

Payroll employment also fell by 0.2% in October, with gross domestic product remaining stable. Rising inflation continues to be a significant concern, particularly impacting transportation and warehousing, construction, and retail trade, which are among the top sectors anticipating challenges due to inflation.

Ontario and British Columbia were the primary contributors to the decrease in business openings from September to October 2023. The statistics reveal a nuanced picture of the Canadian business landscape, indicating regional variations and sector-specific challenges.

This data, provided by Statistics Canada, underlines the evolving economic landscape in Canada, especially pertinent for those interested in the country’s business and economic environment, including potential immigrants and investors.

Source: Statistics Canada, Monthly Business Openings and Closures, October 2023.

About Author

You may also like

Leave a Comment

favicon-96x96

Immigration 2 Canada is the your trusted source for latest news and updates on Immigration Canada

Immigration 2 Canada. All Right Reserved.