The number of active businesses declined in December 2021. The change was driven by both a decrease in the business opening rate (business openings as a percentage of active businesses) from 4.7% in November 2021 to 4.4% in December, and an increase in the business closure rate from 4.3% to 5.0%. For a business to count as a closure in December, they would need to have no employment the entire month. Thus, the December increase in the closure rate does not fully reflect the impact of the Omicron wave.
From November to December 2021, the reopening (new businesses as a percentage of active businesses) held steady at 1.6%, somewhat lower than its 2015-to-2019 historical average of 1.8%. The reopening rate decreased from 3.1% to 2.8%, slightly below its historical average of 2.9%. The decrease in the reopening rate was driven by Ontario, where the entry rate fell from 3.3% to 2.9%.
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