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Canada’s Small Business Employment Dropped by 84,100 Jobs Since July, says Intuit QuickBooks Small Business Index Annual Report



Canada’s Small Business Employment Dropped by 84,100 Jobs Since July, says Intuit QuickBooks Small Business Index Annual Report


Despite strong year-over-year growth, Canada’s small business employment has declined since its July 2024 peak, with manufacturing hit the hardest 


TORONTO, Canada. - Today, Intuit Inc. (Nasdaq: INTU), the global financial technology platform that makes Intuit TurboTax, Credit Karma, QuickBooks, and Mailchimp, released the findings of the 2025 Intuit QuickBooks Small Business Index Annual Report. Developed in collaboration with leading global economist Professor Ufuk Akcigit and his co-authors, the report reveals that Canadian small business employment experienced a decline of 84,100 jobs since its peak in July of 2024, with the manufacturing sector losing 28,100 small business jobs annually—more than any other sector.


While overall employment has grown year-over-year, small business growth is lagging, hindered by high interest rates making it harder for some to access financing to fuel growth. Small businesses that were hardest hit by this had up to 30 per cent lower revenue growth and up to 4 per cent lower employment growth than other small businesses.  


“Rising borrowing costs and limited access to financing are taking a toll on the health of small businesses, contributing to declining employment,” says Ufuk Akcigit, leading global economist and Arnold C. Harberger Professor of Economics at the University of Chicago. “Our research reveals that banks slowed by high interest rates also extended less credit to their small business customers. This reduction has stunted the growth of these businesses, underscoring the critical connection between affordable credit access and small business success across the country.”


The second Small Business Index Annual Report also highlights:


The Credit Card Trend:

Due to their accessibility, flexibility, and ability to address immediate financial needs, credit cards are a vital source of financing for small businesses. In fact, they are currently the number one source of financing for small businesses in Canada. In North America, more than 1 in 10 reported using credit cards for more than 75 per cent of monthly expenses. When asked about the proportion of expenses charged to credit cards, 57 per cent of Canadian small businesses are charging more than 25 per cent of their total monthly business expenses to credit cards. While small businesses with access to greater credit from banks have experienced faster short-term growth, the reliance on credit cards poses longer term risks by driving up the cost of growth and debt repayments.


Navigating Uneven Growth: 

Over the 12 months, small business employment across Canada reflected uneven growth. Canadian small business employment grew by 126,600 jobs, but the pace of growth slowed during the summer of 2024. Despite this overall increase, five sectors, including manufacturing and professional services, experienced annual declines. The professional services sector (NAICS 54) lost 20,000 jobs over the same period, an annual decline of 4.23%, leaving 462,700 employees at small businesses. This was the fastest year-over-year decrease since 2015. Regionally, Ontario led the country with 126,700 new small business jobs, while Quebec faced the steepest decline, losing 27,100 jobs. These trends underscore the importance of providing targeted support to tackle regional and sector specific challenges within the small business landscape.


Tech-Savvy Women Entrepreneurs:

Small businesses that embrace digital transformation are outpacing their peers in growth, and women-owned businesses are leading this charge. Canadian women-owned small businesses are among the most digitally integrated, leveraging technology to drive higher productivity, accelerate revenue growth, and boost confidence in their operations. This trend highlights the critical role digital tools play in shaping the success and resilience of small businesses, particularly those led by women, who are setting the example of innovation and leadership in the evolving business landscape. 


“Small businesses play a key role in the health of the Canadian economy,” says Simon Worsfold, Head of Data Communications at Intuit QuickBooks. “This is why it’s so important for them to have access to a wide range of financing options. This can boost revenue and create jobs. While rising costs and the risks associated with credit card debt remain a concern, there are solutions. Working with an accountant and making smart use of technology can eliminate costs and unlock new pathways to financial success. At Intuit, we are dedicated to offering tools and data-driven insights that power small businesses forward.”


For more insights, check out the Intuit QuickBooks Small Business Index Annual Report. To stay up to date on the latest monthly Index releases, visit the Intuit QuickBooks Small Business Index interactive hub


About the Report: 

RIGOROUS METHODOLOGY

In partnership with Intuit QuickBooks data analysts, the report’s findings are based on a new analysis led by Ufuk Akcigit (Arnold C. Harberger Professor of Economics at the University of Chicago), Raman Singh Chhina (PhD Researcher, University of Chicago), Seyit M. Cilasun (Professor of Economics, TED University), Javier Miranda (Head of the Center for Business and Productivity Dynamics, Halle Institute for Economic Research), and Nicolas Serrano-Velarde (Professor of Finance, Bocconi University). The analysis uses the following data sources:


  1. Intuit QuickBooks Small Business Index: employment and revenue trends among small businesses in Canada, the US, and the UK from October 2023 to October 2024. Methodology details available here.
  2. Intuit QuickBooks customer data: anonymised, aggregated, and benchmarked or reweighted to reflect the wider population of small businesses in Canada, the US, and the UK (note: the Index does not reflect the QuickBooks customer base or Intuit’s business) to provide new insight into small business access to credit, credit card expenditure, payments against credit card balances, and interest payments between 2019 and 2024. Samples: 249,000 US small businesses with 0-100 employees with credit card data recorded in QuickBooks from 2019 to 2024 (Figures 52 and 53) and 677,000 US small businesses with 0-100 employees with credit card data recorded in QuickBooks in 2022 and 2023 (Figure 54). Full methodology available in the report.
  3. Intuit QuickBooks Small Business Insights: quarterly online surveys, commissioned by Intuit QuickBooks, of more than 5,000 small businesses (0-100 employees) in Canada, the US, and the UK. The report uses the July 2024 wave of these surveys, with a total sample of 5,183 respondents (comprising 3,012 in the US; 1,013 in Canada; and 1,158 in the UK). Note that digital tools are broadly defined and grouped by type (e.g. “social media” and “remote work”). Methodology details available here.
  4. Official statistics and other external sources, including publicly available data from: Statistics Canada; the U.S. Census Bureau; U.S. Bureau of Labor Statistics; U.S. Bureau of Economic Analysis; Federal Deposit Insurance Corporation; Federal Reserve Bank of St. Louis; Bank Holding Company (US); Office for National Statistics (UK); OECD; World Bank.


New insights from the analysis of this data comprise three major topic areas in the Intuit QuickBooks Small Business Index Annual Report:


  1. Jobs and revenue growth: highlighting the critical role that small businesses play in the Canadian, US, and UK economies, focusing on which sectors and regions have seen the most and least growth over the past 12 months.
  2. Small business access to financing: a close examination of the impact of interest rates and credit card usage on small business success, using anonymised, reweighted data from up to 677,000 QuickBooks customers in the US and survey data from more than 5,000 small businesses in Canada, the US, and the UK (see sources and sample details above).
  3. Small business adoption of digital tools: the relationship between digital tools (including AI and e-commerce) and small business productivity, growth, and confidence.

The full methodology is provided in the appendix of the Intuit QuickBooks Small Business Index Annual Report.


About Intuit

Intuit is the global financial technology platform that powers prosperity for the people and communities we serve. With approximately 100 million customers worldwide using products such as TurboTax, Credit Karma, QuickBooks, and Mailchimp, we believe that everyone should have the opportunity to prosper. We never stop working to find new, innovative ways to make that possible. Please visit us at Intuit.ca and find us on social for the latest information about Intuit and our products and services.


Intuit QuickBooks:

Emily Stephan

emily_stephan@intuit.com








QuickBooks Canada Team
QuickBooks Canada Team
The team at QuickBooks Canada is here to give you the best tips for starting, running, or growing your small business. From self-employed to small business owners, look to QuickBooks for insights into the latest trends, helpful advice, and more.

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