Fewer active businesses in November 2023, as the decline in openings outpaced that of closures

The business opening rate dropped from 4.5% in October to 4.1% in November. The business closure rate also fell, down 0.2 percentage points to 4.5%. As there were more business closures than openings, the number of active businesses declined, down for the third consecutive month. Payroll employment also declined, in both October and November.

The decrease in the business opening rate in November was driven by the 0.4-percentage-point decline in the reopening rate to 2.5%, its lowest level since December 2015. The entry rate held steady at 1.6% in November 2023.

Business closures dropped slightly or remained relatively unchanged across all sectors in November. In the same month, the number of business insolvency filings held steady compared with October.

The decrease in business openings in November was widespread across sectors. Professional, scientific and technical services (-817 openings compared with October) led the decline, followed by construction (-687) and transportation and warehousing (-382).

The number of active businesses dropped or changed little in all sectors in November. The largest declines were in other services (except public administration) (-0.5% growth rate; -390 active businesses compared with October), construction (-0.3%; -337) and professional, scientific and technical services (-0.2%; -288).