Multifactor productivity growth estimates

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Multifactor productivity growth estimates for 2010 are now available for the Canadian business sector and its major sub-sectors. Data include multifactor productivity, value-added, capital input and labour input in the aggregate business sector and major sub-sectors.

These data reflect revisions of investment and gross domestic product from 2007 to 2010, published in The Daily on May 30, 2011, and revisions of hours worked for the last four years, published in The Daily on March 15, 2011 and in The Daily on June 10, 2011.

The release on June 10, 2011 includes a historical revision to the hours worked for the total business sector, but not for the individual industries. This revision resulted in a 0.1 percentage point increase on average in the annual growth rate of business labour productivity between 1981 and 2010.

The historical revisions are not introduced in the annual multifactor productivity estimates for the business sector and its major subsectors released today. Instead, the revisions will be first introduced in the industry multifactor productivity database in December 2011 when the historical revisions to hours worked in both total business sector and individual industries become available.

Note: Multifactor productivity measures at Statistics Canada are derived from a growth accounting framework that allows analysts to isolate the effects of increases in capital intensity and skills upgrading on the growth in labour productivity.

The residual portion of labour productivity growth that is not accounted for by increased capital intensity and skills upgrading is called "growth in multifactor productivity." It measures the efficiency with which capital and labour are used in production. Growth in this area is often associated with technological change, organizational change or economies of scale.

Available on CANSIM: table 383-0021.

Definitions, data sources and methods: survey number 1402.

A description of the method used to derive productivity measures can be found in the "User guide for Statistics Canada's annual multifactor productivity program," as part of The Canadian Productivity Review (15-206-X2007014, free) series, as well as in The Latest Developments in the Canadian Economic Accounts: Industry Productivity Database, Vol. 7, no. 5 (13-605-X, free), available from the Analytical studies module of our website.

Additional information on productivity is available at the following website (www.statcan.gc.ca/economicanalysis).

For more information, or to enquire about the concepts, methods or data quality of this release, contact Wulong Gu (613-951-0754), Economic Analysis Division.