Business closures spiked across P.E.I. in April: StatsCan
Island experiences 9% drop in continuing businesses as 428 operations close
Prince Edward Island business closures, which had been hovering around 200 a month for more than a year, shot to 428 in April as the effects of the COVID-19 pandemic took hold.
That's according to a new report from Statistics Canada issued Wednesday, which attempts to measure closures of any type, whether permanent or temporary.
For the purposes of the report, "closing businesses are businesses that transition from having at least one employee in the previous month to having no employees in the current month. These instances occur when a small firm goes out of business, when a large firm closes an establishment temporarily or permanently, and when a seasonal firm ceases business activity for the year."
The federal agency said that 88,187 businesses closed across Canada in April 2020, more than twice the level reported in April 2019. "By comparison, openings declined by almost one-quarter over the same period."
The P.E.I. numbers showed 31 per cent fewer business openings in April 2020 compared to the same month in the previous year, as well as a nine per cent drop in the category "continuing businesses," defined as "businesses that have at least one employee in the previous month and at least one employee in the current month."
In April, the Island had 3,057 continuing businesses, according to Statistics Canada. That's compared to 3,334 one year earlier.