Canada's small business employment decreased by 49,300 jobs (-0.95%) in Q1-2026—another decline after a volatile stretch. Employment dropped sharply in Q3-2025 (over 224,000 jobs lost), partially recovered in Q4 (+85,400 jobs), and has now pulled back again to start 2026.

But the headline number masks a more divided picture: at the sector level, more sectors grew than shrank.

Quarterly trends by sector

Seven of 13 sectors tracked by the Index added jobs in Q1-2026—a more balanced split than the overall decline suggests. Utilities (NAICS 22) posted the fastest growth (10.59%, +2,900 jobs), and accommodation and food services (NAICS 72) had the largest gains, adding 25,700 jobs (4.41%).

The declines, however, were concentrated and heavy. Manufacturing (NAICS 31-33) shed 26,100 jobs (-8.53%) and wholesale and retail trade (NAICS 41-42; 44-45) lost 55,000 (-5.11%)—together accounting for more than 80,000 of the jobs lost across the country.

See the tables and charts below for full sector details.

Quarterly trends by region

The regional picture tells the same story. While the Prairies (+15,600 jobs, +1.41%) and Quebec (+20,700 jobs, +2.01%) both grew, Ontario shed 64,600 jobs (-3.50%)—a decline larger than the national net loss. In other words, growth elsewhere absorbed some of the damage, but not enough to offset the country's largest province.

Small business jobs in Atlantic Canada (-11,400 jobs, -3.05%) and British Columbia (-9,500 jobs, -1.14%) also declined.

See the tables and charts below for full regional details.