In Q4-2025, Canada’s small business employment increased by 137,100 jobs (2.64%), following consecutive quarterly declines in Q2 and Q3, as the chart below shows:

Annually, small business employment decreased by 73,100 jobs (-1.38%) in 2025 compared to 2024. This was primarily due to the notable decrease in Q3-2025, when quarterly employment decreased by 212,300 jobs (-4.06%). Since 2015, the only quarter with a larger decrease was Q1-2020, when the COVID-19 pandemic began. Get a deeper dive into the annual trends here in the Small Business Index’s latest annual report.

Quarterly trends by sector

Eight of the 13 sectors tracked by the Index show employment growth in Q4-2025. Of these, the wholesale and retail trades sector (NAICS 41-42; 44-45) had the largest increase, with 58,300 more jobs. The accommodation and food services sector (NAICS 72) had the fastest quarterly growth (8.27%), adding 47,700 jobs. See the tables and charts below for details.

Quarterly trends by region

Similarly, all but one region of Canada tracked by the Index had small business employment growth in Q4-2025. British Columbia had the largest increase (52,400 jobs) and the fastest quarterly growth (6.57%). See the tables and charts below for details.