Number of Canadian Manufacturers Rises
In February 2022, the number of active businesses decreased (-0.4%; -3,555) compared with the previous month for the first time since May 2020. This decrease was largely driven by an increase in the business closure rate, from 4.1% in January to 5.0% in February. The business opening rate held steady at 4.9%. The exit rate rose slightly from 1.5% in July to 1.6% in August 2021, right below its historical average of 1.7%. While the number of active businesses in the business sector has been above its February 2020 pre-pandemic level since September 2021, the situation is different across sectors.
The number of active businesses in manufacturing rose by 0.2% (+103) in February 2022 and settled above its February 2020 level for the second time since the onset of the pandemic. The number of active businesses has generally been above its pre-pandemic level in the other goods-producing sectors since December 2020. In February 2022, the number of active businesses was below its February 2020 level in 8 of the 13 services-producing industries.
After two years of the pandemic, most provinces and territories have settled above or close to their respective February 2020 levels in terms of the number of active businesses. Alberta (-1,501) and Newfoundland and Labrador (-441) were the only provinces where the number of active companies has been below its February 2020 level since the onset of the pandemic.