Canada Experiences A Record Number Of Business Closures

According to Statistics Canada, the COVID-19 pandemic forced tens of thousands of businesses to close in the first full month of lockdowns.

During April, Canada recorded 88,187 business closures, Statistics Canada reported. That’s more than twice the 39,078 businesses that shut down in the same month last year. The report also showed that fewer new businesses are now opening.

Accommodation and restaurants, along with other industries that cater to individuals, recorded the most closures in April. Retailers were also hit hard. That coincides with employment data showing large numbers of layoffs in these sectors as demand for in-person services collapsed.

A survey by the Canadian Federation of Independent Business taken at the end of June found another 150,000 Canadians businesses, or 14% of the total, are at least somewhat considering bankruptcy or winding down their operations because of COVID-19.

The report also found that fewer businesses are opening. Canada recorded 32,803 new businesses in April, down 18% from a year earlier. The number of businesses in operation across Canada -- at 679,336 in April -- is the lowest since the statistics agency began tracking this data in 2015.