The latest quarterly data from the Small Business Index shows rising employment in Canada in the first three months of 2025—reversing two consecutive quarters of declines. Businesses with 1-19 employees now employ 5,378,300 people, which is 40,300 more than the previous quarter. As the chart below shows, the longer-term trend has been upward since the COVID-19 pandemic, with 267,000 jobs created at small businesses since Q4-2021.

The long-term national trends in quarterly employment growth are available from the chart below. All data is seasonally-adjusted.

Accommodation and food services sector creates the most jobs at small businesses

Overall, six of the 13 sectors included in the Index had rising small business employment in Q1-2025. Their growth outweighed the declines in the other seven sectors. See the table below for details.

The accommodation and food services sector (NAICS 72) had the largest increase among the 13 sectors, creating 37,700 small business jobs. Similarly, the latest available data from Statistics Canada shows food services' sales increased by 0.2% January 2025 to more than $8.2 billion.

Two other sectors that enjoyed strong jobs growth at small businesses in Q1-2025 were the manufacturing sector (NAICS 31-33) and the wholesale and retail trade sector (NAICS 41-42; 44-45). Notably, the 9.27% quarterly growth in manufacturing jobs is among the highest ever recorded by the Index. Since 2015, the sector has only had faster growth in three other quarters. Recent data from Statistics Canada similarly shows total manufacturing sales grew by 2% in January 2025.

British Columbia was the best performing region

By region, small businesses in British Columbia created the most jobs in Q1-2025—now employing 865,400 people. The 5.30% quarterly growth rate in British Columbia is among the highest recorded by the Index since 2015—exceeded in only four other quarters. Ontario has more small business jobs than any other region in Canada and also saw growth in Q1-2025. See the table below for details.

Methodology: For more information about the sample, data sources, and calculations used in the Small Business Index, read the full methodology here.