- Peel remains an attractive business destination given its many strategic advantages resulting in continued expansion in Peel’s business sector.
- As Peel’s business sector expands, there is a long-term shift toward the service sector and towards businesses without employees.
- The economic shift towards services is a trend observed internationally.
In December 2018, there were 175,534 business establishments in Peel Region, an increase of 6.4 per cent from the previous year and a continuation of the long-term expansion in Peel’s business sector.
Sustained expansion in Peel’s business sector reflects the several factors including Peel’s many strategic advantages which make it an attractive business destination.
Relative to 2017, there were 12,228 more classified businesses (8.5 per cent) in 2018 than in 2017, while there were 1,645 fewer unclassified businesses (-7.7 per cent) in 2017.
Since 2014 when total business establishments were divided into classified and unclassified businesses2, classified businesses have increased (23.4 per cent) at a faster pace than unclassified businesses (11.9 per cent).
In 2018, there were 12,228 more classified3 businesses (8.5 per cent) in Peel than in 2017, while there were 1,645 fewer unclassified businesses (-7.7 per cent).
Classified Business Eestablishments by Sector
In December 2018, there were 20,029 business establishments in the goods-producing sector in Peel and 135,656 business establishments in services.
Between 2008 and 2018, the goods-producing sector has reduced its share of Peel’s business sector by approximately 3.9 percentage points, while the service sector has increased its share by the same proportion.
Economic shifts toward services have occurred in many Organisation of Economic Cooperation and Development (OECD) countries, including Canada.
Business Establishments With/Without Employees
Over the past decade, the number of business establishments in Peel “without employees” increased (125.4 per cent) at a faster pace than those “with” employees (68.2 per cent).
In December 2018, there were 57,966 business “with” employees and the remaining 117,568 were businesses “without” employees.
These represented respective shares of 33.0 per cent and 67.0 per cent of total businesses.
1 While business establishment data is presented annually, counts are not time series as there are ongoing methodological changes which may negate true comparisons from year to year.
2 Unclassified business establishments are those which do not fit into any of the North American Industry Classification System (NAICS) and are therefore not yet assigned NAICS code.
3 Classified businesses are those that that are assignes a NAICS code and are classified under the goods producing or service sector.