Archived — Key Small Business Statistics - July 2012
How many jobs do small businesses create?
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The data that make it possible to answer this question are derived from Statistics Canada's Survey of Employment, Payrolls and Hours (SEPH). SEPH data exclude self-employed workers who are not on a payroll. Other limitations also apply (see How many people work for small businesses?).
Table 6 displays relative contributions to the net change in private sector paid employment by small, medium-sized and large businesses from 2001 to 2011. Over the years, the relative contribution in terms of size varied greatly. During the period under review, each of the business-size categories played the leading role at different times in net job creation in Canada. For three years, from 2001 to 2002 and in 2010, small businesses made the greatest contribution to net job creation. On the other hand, large businesses played the leading job-creation role from 2003 to 2008. Over the 2001 to 2011 period, small firms accounted for 43 percent of all jobs created, on average, in the private sector.
|Year||Size of Business — Number of Employees|
Source: Statistics Canada, Survey of Employment, Payrolls and Hours (SEPH), April 2012, and calculations by Industry Canada. Historical data are frequently revised and, as of 2000, are available on a North American Industry Classification System (NAICS) basis.
|Total Job Creation
|Percentage of Job Creation||4.0||9.2||15.0||14.6||42.8||11.1||53.9||46.2|
Table 7 shows year-over-year quarterly changes in paid employment from the third quarter of 2008 to the fourth quarter of 2011 by business size. Jobs were created in the third and fourth quarter of 2008 and were lost in every quarter of 2009 and in the first two quarters of 2010. In the second half of 2008, the rate of job creation averaged about 105,000 jobs per quarter. The number of jobs created started declining significantly in 2008 and became negative in 2009. In 2009, the number of jobs lost increased rapidly from 235,000 jobs lost in the first quarter to 527,000 jobs lost in the third quarter. The decrease in GDP growth was a factor in causing job losses throughout 2009 among businesses of all sizes. The rate of job creation started to recover in the fourth quarter of 2009 and reached positive levels in the third quarter of 2010.
|Year and Quarter||Total
|Net Private Sector Paid Employment Change by Size of Business|
Source: Statistics Canada, Survey of Employment, Payrolls and Hours (SEPH), April 2012, and calculations by Industry Canada.
|% Contribution to Private Sector Employment Change by Size of Business|
Small businesses lost jobs in each year-over-year period between the first quarter of 2009 and the first quarter of 2010. Small businesses regained jobs in the second quarter of 2010, while medium-sized and large businesses regained jobs in the third quarter of 2010. In 2011, small businesses lost jobs in the second quarter. This occurred mainly in firms with fewer than 20 employees.
Job creation among micro-businesses was the most volatile of the seven firm-size categories. This is the only firm-size category in 2009 that was a source of job creation, when micro-businesses created about 16,000 jobs in the third quarter of 2009. However, micro-businesses shed jobs from the fourth quarter of 2008 to the second quarter of 2009, in the fourth quarter of 2009, in the third quarter of 2010 and in every quarter of 2011.
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