How many Canadian businesses are going bankrupt?
Canadian business insolvencies held steady at 4.0 in December 2024, matching the lowest level in five years.
What this measures
Business insolvencies measure the number of Canadian companies that are unable to meet their debt obligations and file for bankruptcy or restructuring. This indicator matters because it reflects financial stress in the business sector, which can impact jobs, investment, and broader economic confidence.
Business insolvencies remain near historic lows
Business insolvencies have declined steadily since peaking at 5.1 in 2022, a year marked by high interest rates and post-pandemic economic adjustments. The rate fell to 4.1 in 2023 and held at 4.0 in 2024, the lowest annual average since 2020. The December 2024 figure of 4.0 matches the previous month, indicating no immediate uptick in financial distress.
Business insolvencies per 1,000 businesses
Source: Statistics Canada, Table 33,100,036
View data table (29 values)
| Period | Value | Change |
|---|---|---|
| 2024 | 4 | -0.1 |
| 2023 | 4.1 | -1 |
| 2022 | 5.1 | +0.9 |
| 2021 | 4.2 | -0.3 |
| 2020 | 4.5 | -0.4 |
| 2019 | 4.9 | -0.9 |
| 2018 | 5.8 | +0.5 |
| 2017 | 5.3 | -0.8 |
| 2016 | 6.1 | +0.3 |
| 2015 | 5.8 | +0.9 |
| 2014 | 4.9 | -0.2 |
| 2013 | 5.1 | -0.8 |
| 2012 | 5.9 | +0.2 |
| 2011 | 5.7 | +0.2 |
| 2010 | 5.5 | +0.5 |
| 2009 | 5 | +0.4 |
| 2008 | 4.6 | -0.6 |
| 2007 | 5.2 | +0.1 |
| 2006 | 5.1 | +0.5 |
| 2005 | 4.6 | +0.8 |
| 2004 | 3.8 | -0.5 |
| 2003 | 4.3 | +0.5 |
| 2002 | 3.8 | +0.4 |
| 2001 | 3.4 | +0.1 |
| 2000 | 3.3 | -1.7 |
| 1999 | 5 | +1.2 |
| 1998 | 3.8 | -1 |
| 1997 | 4.8 | -0.1 |
| 1996 | 4.9 |
Annual trend shows gradual improvement since pandemic peak
The annual average of business insolvencies peaked at 5.1 in 2022, likely influenced by the Bank of Canada's aggressive interest rate hikes to combat inflation. By 2023, the rate dropped to 4.1, and it remained at 4.0 in 2024, suggesting stabilization. The 2020 figure of 4.5 reflects pandemic-related disruptions, while 2021's 4.2 shows early recovery efforts.
Annual business insolvencies per 1,000 businesses
Source: Statistics Canada, Table 33,100,036
View data table (29 values)
| Period | Value | Change |
|---|---|---|
| 2024 | 4 | -0.1 |
| 2023 | 4.1 | -1 |
| 2022 | 5.1 | +0.9 |
| 2021 | 4.2 | -0.3 |
| 2020 | 4.5 | -0.4 |
| 2019 | 4.9 | -0.9 |
| 2018 | 5.8 | +0.5 |
| 2017 | 5.3 | -0.8 |
| 2016 | 6.1 | +0.3 |
| 2015 | 5.8 | +0.9 |
| 2014 | 4.9 | -0.2 |
| 2013 | 5.1 | -0.8 |
| 2012 | 5.9 | +0.2 |
| 2011 | 5.7 | +0.2 |
| 2010 | 5.5 | +0.5 |
| 2009 | 5 | +0.4 |
| 2008 | 4.6 | -0.6 |
| 2007 | 5.2 | +0.1 |
| 2006 | 5.1 | +0.5 |
| 2005 | 4.6 | +0.8 |
| 2004 | 3.8 | -0.5 |
| 2003 | 4.3 | +0.5 |
| 2002 | 3.8 | +0.4 |
| 2001 | 3.4 | +0.1 |
| 2000 | 3.3 | -1.7 |
| 1999 | 5 | +1.2 |
| 1998 | 3.8 | -1 |
| 1997 | 4.8 | -0.1 |
| 1996 | 4.9 |
Data sources
Narratives are AI-generated from official Statistics Canada data. Verify at source.