Business Closures Decrease As Restrictions Ease

The July estimates of business openings and closures show that, with the continued easing of COVID-19 restrictions, there was a large decrease in business closures, says Statistics Canada. In July, 36,513 business closures were observed in the Canadian business sector, 33.9 per cent less than what was observed in June. This number of business closures in July is comparable with levels observed prior to the pandemic and 6.7 per cent lower than the pre-COVID level observed in February. By comparison, there was a slight decrease in the number of business openings of 3.3 per cent from June to July. However, openings in July surpassed closures in the same month. With the exception of Yukon, which recorded a slight increase in business closures of 2.8 per cent since June, the decrease in business closures was widespread across provinces and territories.