Canada's small business employment decreased by 3,300 jobs (-0.06%) in Q2-2026—a second consecutive quarter of decline, but a far more modest one than Q1's steep 1.55% drop. At the national level, the quarter was close to flat.

Beneath that near-flat headline, the picture is more balanced than in recent quarters, with sectors and regions splitting closer to evenly between growth and decline.

Quarterly trends by sector

Six of 13 sectors tracked by the Index added jobs in Q2-2026. Agriculture, natural resources, and mining (NAICS 11; 21) had the fastest growth (17.02%), while business services (NAICS 55-56) added the most jobs of any sector (+33,000, 13.09%).

The declines were led by wholesale and retail trade (NAICS 41-42; 44-45), which shed 34,500 jobs (-3.31%)—the largest absolute loss of any sector. Utilities (NAICS 22) had the fastest rate of decline (-17.67%), though from a comparatively small employment base. Health care and social assistance (NAICS 62) also lost significant ground, down 17,000 jobs (-2.24%).

See the tables and charts below for full sector details.

Quarterly trends by region

Three of five regions grew small business employment in Q2-2026. Ontario led the way, adding 20,600 jobs (+1.14%)—both the largest gain and fastest growth rate of any region. Atlantic Canada (+4,300 jobs, +1.12%) and British Columbia (+6,000 jobs, +0.75%) also grew.

The Prairies pulled the opposite direction, shedding 32,000 jobs (-2.93%)—both the largest decline and fastest rate of decline of any region. Quebec also declined, more modestly (-2,300 jobs, -0.22%).

See the tables and charts below for full regional details.