More firms, more jobs For an economy to thrive it needs entrepreneurs to take of 2018 running at its fastest pace since 2012. Growth was risks, launch new ventures and, importantly, create jobs. led by the transportation and warehousing sector, one For too long, Canada’s net firm creation – a measure of of the strongest economic performers in recent years. the number of business in the country that reflects new And for an economy looking forward, the information and enterprises opening and failed businesses closing – was communications technology sector emerged as a growth on a downward trajectory. By 2015 it flat-lined amid a star in 2018. Need another reminder why net firm creation pullback in the oil and gas industry. We’ve seen a recov- matters? In 2017, it resulted in 100,000 new jobs being cre- ery since then, with net firm creation over the first half ated, and was on track for a similar gain in 2018. More new businesses are being created than at any time since 2012 Net firm creation (entry rate less exit rate), percent 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: Statistics Canada, RBC Economics Research In 2017, net firm creation resulted “ in 100,000 new jobs being created, and was on track for a similar gain in 2018. ” RBC Economics Research | Navigating 2019 - 9 big insights for the year ahead | January 2019 21