In June 2021, the number of business closures increased by 6.4%, following a 5.6% decline in May. The number of business openings (-1.1%) dropped for the third consecutive month. From April to June, the average of both business closures and openings has been close to their 2015-to-2019 averages, and the closures and openings did not react strongly to changes in economic restrictions during the third wave of the COVID-19 pandemic, except in the tourism sector.
The number of entrants grew by 2.3% in June. This number has been generally above its 2015-to-2019 average since October 2020. The decline in the number of business openings in June and in recent months has been driven entirely by the declining number of reopenings.
The number of entrants increased in every province, except New Brunswick (-19.5%) and Saskatchewan (-2.9%). Only Nova Scotia (+34.2%) and Ontario (+6.4%) had higher numbers of reopenings in June than in the previous month.
The number of business openings decreased in every province, except Nova Scotia (+19.0%), Ontario (+8.2%) and Alberta (+1.0%). The decline in business openings in Canada was led by the decreases in New Brunswick (-25.0%), Quebec (-1.4%) and British Columbia (-2.1%).
Quebec (-2.6%) was the only province with fewer business closures in June than in May. Manitoba (+42.0%) had more business closures in June than in the previous month for the first time since February.
The number of business openings in the tourism sector (+43.9%; +1,054) increased for the first time since January. This was its highest percentage increase since June 2020.
Arts, entertainment and recreation (+26.8%; +158) and accommodation and food services (+12.0%; +248) showed higher business openings after two and three consecutive months of decreases, respectively. The change in openings in these sectors was consistent with their variation in real gross domestic product, which rose in June for the first time since March.
The number of business closures grew in all industries, except manufacturing (-1.5%) and professional, scientific and technical services (-0.8%). The growth in business closures was largely driven by the increase in transportation and warehousing (+21.2%) and construction (+3.7%).
Source: Statistics Canada