Québec had the fastest rise in small business employment and created the most small business jobs
In a reversal of the trend we saw in July, when all five regions had falling small business employment, in August employment was up in all but one Canadian region (Ontario, down by 0.09% with 4,600 fewer jobs).
Québec posted both the fastest monthly growth rate, at 0.13%, and the most new small business jobs, up by 1,400. The Prairie Provinces region (Manitoba, Saskatchewan, and Alberta) was close behind, creating 1,300 jobs, with only a marginally slower growth rate (also at 0.13%).
Ufuk Akcigit, the Arnold C. Harberger Professor of Economics at the University of Chicago, said: “In a bid to address inflationary pressures, the Bank of Canada took the step of raising the benchmark interest rate to its highest level in 22 years in July, reaching 5%. This decision, aimed at curbing inflation, has brought about tighter credit conditions.
“These conditions, coupled with diminished consumer demand resulting from household incomes being absorbed by mortgage payments and rising prices, are contributing to an unfavorable business environment. This is evident in the subdued GDP forecasts compared to initial projections. In August, the Intuit QuickBooks Small Business Index — which has recorded negative growth in Canadian small business employment for all months except May this year — continued to reveal the downward trajectory of small business job growth.
“The Index shows the business and support services sector had the fastest growth, with a 0.19% increase in small business employment. Conversely, high temperatures, the dry weather conditions, and destructive effects of wildfires continued to cast a shadow over the agriculture, natural resources and mining sector. The Canadian oil and gas sector, for example, includes many small businesses. The impact of the wildfires on Canada's oil-sand producers led to production slowdowns, consequently affecting the broader landscape of other small business activities in the sector. These challenges were reflected by the data in the Intuit QuickBooks Small Business Index, which showed a 0.38% decline in employment among firms with 1-19 employees within the agriculture, natural resources and mining sector. Similarly, the utilities sector also witnessed a decline of 0.29% in small business employment, underscoring the intricate interplay of external factors on the business landscape."
Get all the details from the interactive Small Business Index dashboard.
More information
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 September 7.