Small business employment: down by 34,900 jobs

In Canada in October, employment for small businesses with 1 to 19 employees decreased by 34,900 jobs. These small businesses now employ 5,178,300 people.

Monthly growth rate: down by 0.67%

Compared to the previous official benchmark of 5,213,200 in September’s Labour Force Survey (published by Statistics Canada), the monthly decrease in October was 0.67%.

By sector: small business employment is down in all sectors

In October, small business employment declined in all 13 sectors covered by the Index. The utilities sector (NAICS 22) had the largest decline of 1.4% but the larger wholesale and retail trade sector (NAICS 41-42; 44-45) lost the most small business jobs, down by 4,700.

By region: small business employment is down in all regions

In October, small business employment decreased in all five regions covered by the Index, with the largest and fastest decline in Ontario, down by 14,900 small business jobs—a monthly drop of 0.8%. 

More information

Get more data insights from the interactive Intuit QuickBooks Small Business Index dashboard.

Media inquiries

Media contact details for QuickBooks in Canada can be found here on the Intuit website.

USA Index

The Intuit QuickBooks Small Business Index is also published monthly in the US. Get the latest small business employment insights for the US here. 

UK Index

The Intuit QuickBooks Small Business Index is also published monthly in the UK, a few days after the US and Canada. Get the latest small business hiring insights for the UK on November 6.

About the Index

The Intuit QuickBooks Small Business Index is a timely new measure of small business employment and hiring in the US, Canada, and the UK. The Index launched in March 2023 and is updated monthly. The Index uses purpose-built economic models to normalize anonymized QuickBooks data to reflect the general population of small businesses in each country; it is not a reflection of Intuit’s business. The Index was developed in collaboration with leading economist Professor Ufuk Akcigit and an international team of researchers and academics.

Methodology

The Intuit QuickBooks Small Business Index creates aggregated data outputs from a sample of anonymized QuickBooks Online Payroll customer records which are calibrated using statistical methods to create modeled results which better reflect the general population of small businesses in each country, as represented by published official statistics. Statistical adjustment ensures the Index truly reflects employment and job vacancy changes rather than trends in the QuickBooks customer base. 

Read more or download the full methodology here. 

Rounded values

Total and monthly changes in employment and job vacancies have been rounded to the nearest hundred. Monthly changes and growth rates are calculated before total employment or job vacancy values are rounded. Rates have been rounded to the nearest hundredth.

Seasonal adjustments

The Index’s data insights are seasonally adjusted to limit the effect of seasonal patterns in employment and hiring throughout the year, which lead to regular fluctuations in workforce growth and contraction.

Employment growth formula

Employment growth(t) = [Employment(t)-Employment(t-1)]/[0.5*Employment(t)+0.5*Employment(t-1)]

*Employment levels

The Index produces a monthly prediction of employment growth rates by country, region, and sector. In order to translate these growth rates into the number of jobs/vacancies gained or lost, the growth rates are multiplied by the prior month’s predicted employment levels, except during the months when official statistics are published. During those months, the latest official employment levels that have been reported are used in the calculation instead of the Index’s prior month’s predicted employment levels. As a result, the Index’s predicted total employment levels may at times differ from the predicted growth rates. Official statistics are published at different frequencies depending on the country ranging from monthly to quarterly.

Time series

The Index uses data going back to January 2015 in Canada and the US and to January 2018 in the UK. Published at the earliest opportunity every month, the Index shows the number of people employed by small businesses (in Canada and the US) or the number of job vacancies at small businesses (in the UK) in the previous month and how that number has changed since the month before. The Index helps to eliminate almost all of the time lags in official statistics by providing estimated projections of what those statistics will ultimately show when they are published.

Sample sizes

The total sample across all three countries is around 424,000 small businesses. The Canadian sample is almost 66,000 small businesses. The US sample is almost 333,000 small businesses. The UK sample is almost 25,000 small businesses. The minimum sample sizes for regions or sectors to be included in the Index are 800 small businesses in Canada, 1,000 small businesses in the US, and 200 small businesses in the UK. 

Target populations

In Canada, the target population is small businesses with one to 19 employees. In the US and UK, the Index targets the populations of small businesses with one to nine employees. The differences ensure the Index’s data insights are consistent with official statistics in each country, which are used for benchmarking during the calibration process. Timely data insights for these populations of small businesses are particularly valuable since most datasets fail to cover this portion of the economy well. Please note: Unlike in Canada and the US, the UK Index uses job vacancy data for calibration rather than employment data because official employment statistics are not currently available for small businesses on a monthly basis. 

External data sources

External data sources used alongside the samples of anonymized QuickBooks Online Payroll customer data include:

• Statistics Canada Labour Force Survey and regions

Geographic regions

• In Canada, data insights are divided into Statistics Canada regions

Industry sectors

• In Canada, data insights are available by North American Industry Classification System (NAICS) sectors 

Disclaimer

This content is for information purposes only and should not be considered legal, accounting or tax advice, or a substitute for obtaining such advice specific to your business. Additional information and exceptions may apply. Applicable laws may vary by region, state or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. Intuit does not have any responsibility for updating or revising any information presented herein. Accordingly, the information provided should not be relied upon as a substitute for independent research. Intuit does not warrant that the material contained herein will continue to be accurate nor that it is completely free of errors when published. Readers should verify statements before relying on them.

We provide third-party links as a convenience and for informational purposes only. Intuit does not endorse or approve these products and services, or the opinions of these corporations or organizations or individuals. Intuit accepts no responsibility for the accuracy, legality, or content on these sites.