More business creation in Alberta and Nova Scotia, steady in Quebec, cautious in British Columbia
Business opening and closure - q2 2025
Canada’s business landscape has been quietly shifting over the three months leading to June, revealing pockets of resilience alongside signs of strain. According to Statistics Canada, the balance between companies opening and closing has tipped only slightly, but the underlying story varies dramatically depending on where you look and which industries are in focus. For anyone in the staffing industry, these shifts are more than abstract numbers, they point to where demand for workers could rise, and where caution might be in order.
A Tale of Two Canadas
Nationally, the picture looks deceptively stable. The rate of business closures edged up to 4.8 percent in May, while the rate of new openings held steady at the same 4.8 percent, unchanged since February. Active businesses (the true measure of vibrancy) declined by only 141 companies nationwide. On the surface, it seems like a wash. Yet underneath, certain provinces and sectors are revealing much more dynamism than others.
Take Nova Scotia, where the number of active businesses grew in May, adding more than 70 new firms. That kind of steady expansion suggests a relatively healthy environment, particularly for local service providers. Alberta also stands out, with one of the highest opening rates in the country, reflecting its traditionally entrepreneurial base and the steady pull of industries tied to resources and services. For staffing firms, both provinces may present opportunities, as new businesses tend to lean on external partners to scale quickly. By contrast, British Columbia and Saskatchewan saw declines in active businesses, a reminder that some local economies are struggling to balance the churn of openings and closures.
Sector by Sector
The sector story is even more telling. Construction led the increase in closures in May, followed closely by professional, scientific and technical services, and accommodation and food services. On the surface, that looks like a worrying signal. But the same sectors also posted meaningful increases in new openings, suggesting that these are highly dynamic markets rather than collapsing ones. Staffing firms will recognize the pattern: high turnover often translates into frequent hiring needs, even if the underlying demand is volatile.
Health care and social assistance is a sector worth watching closely. It has seen both rising closures and rising openings, but the net number of active businesses is still growing. This push-and-pull dynamic speaks to the strain of demand in a system where new providers are entering to meet needs, even as others shut their doors. For staffing firms specializing in medical and social care professionals, this churn could translate into steady business, albeit with clients who may be under financial or regulatory pressure.
Retail trade, transportation and warehousing, and wholesale trade, on the other hand, show clear signs of contraction in active businesses. That suggests weaker demand, thinner margins, or operational challenges that are prompting exits. Staffing opportunities here may be less about growth and more about temporary cover, restructuring, or helping businesses adapt to leaner conditions. By contrast, administrative and support services, other personal services, and parts of the hospitality industry are inching upward, signaling small but steady hiring appetites.
Region by Region
Regional contrasts add another layer. Quebec continues to have some of the lowest opening and closure rates in the country, reflecting a slower but more stable pace of business turnover. Prince Edward Island and Alberta post higher opening rates, suggesting more dynamism. For staffing firms, that means Quebec may offer steadier but slower growth, while Alberta presents a more active—if bumpier—market.
For those in the business of matching workers with employers, the lesson is clear: the most promising opportunities lie in industries where turnover is highest and demand for labor remains resilient, even if businesses themselves are struggling to stay afloat. Construction, health care, professional services, and hospitality all fall into this category. Provinces like Alberta and Nova Scotia stand out as areas of expansion, while regions like British Columbia and Saskatchewan may require a more cautious approach.
What emerges is not a single national story, but a mosaic. Canada’s economy is not shrinking dramatically, nor is it booming. Instead, it is reshuffling. And in that constant churn, between openings and closures, between provinces growing and those retrenching, lies the pulse of future staffing demand. For staffing firms, the challenge is to follow the churn closely and place bets where new businesses are forming and sectors are being forced to adapt. That, more than the headline numbers, is where tomorrow’s opportunities will be found.