Short-Term Effect of COVID-19 on Self-Employed Workers in Canada

Using the Canadian Labour Force Survey, we document the short-term impact of coronavirus disease 2019 (COVID-19) on self-employed individuals in Canada, whom we interpret as small business owners. We document an important decrease in business ownership between February 2020 and May 2020 (−14.8 percent for incorporated and −10.1 percent for unincorporated entities). We find a substantial decrease in ownership and aggregate hours for women, immigrants, and less educated people over the same period. The occupational categories with the largest decrease are in art, culture, and recreation (−14.8 percent); in education, law, and social, community, and government services (−13.6 percent); and in sales and service occupations (−12.8 percent).