Statistics Canada’s latest June business openings and closures data pointed to modest improvement but a mixed performance following pandemic-related closures.
Total active businesses in B.C. rose 1% from May to 117,312 businesses but were 10% below year ago levels.
Businesses closures eased for a second straight month in June to 8,314, down 9.2% from May. That said, levels were 13% higher than a year ago. Total openings rose 27.6% to 9,081 businesses and 33% above a year ago.
Broadly, the number of active businesses rose across metropolitan areas.
Relaxation of health measures led to restaurants reopenings, as well as businesses related to private personal services, arts/entertainment, and retail services. As a result, active business growth was led by gains in these areas, while many other less hard hit sectors posted net declines during the month, which is somewhat concerning. A challenging economic environment, highlighted by a decimated tourism industry and subdued economic outlook, may be causing organizations across industries to recalibrate given the medium-term outlook and adjust or exit if needed.
B.C.’s population reached an estimated 5.147 million persons as of July 1. Year-over-year population growth slowed to 1.1% (56,757) from a 1.6% (78,877) reading on April 1. Population was essentially unchanged from the most recent quarter. That growth halted during Q2 was no surprise. Pandemic measures hammered the global travel sector while Canada implemented restrictions on entry for non-residents.
Excluding non-permanent residents, net international immigration during the second quarter came in at 6,133 persons, down 47% from same period in 2019.
Net gains from other provinces increased as B.C. lost fewer residents. Net interprovincial migration of 7,940 persons rose 30% from a year ago.
Despite the second quarter stall in population due to the pandemic, the province still managed a decent year of growth, from July to July, of 1.1%. Net international immigration of more than 37,838 was among the highest in decades on high levels of in-migration. The main drag on annual population was a drop in net non-permanent residents.
Pandemic-related factors will continue to constrain growth through 2020 and into 2021, but population growth in 2020-21 is forecast to slip below 1%. •
Bryan Yu is deputy chief economist at Central 1 Credit Union.
