Labour productivity
Key indicators
Selected geographical area: Canada
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-0.3%
(quarterly change) -
$59.10 per hour-2.2%
(annual change)
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- Articles and reports: 13-605-X202400100003Description: The document focuses on the evolution of Statistics Canada's labour productivity program, tracing its historical background, outlining its structure, as well as detailing the methodology and data sources used. It then discusses the diverse applications of provincial productivity data, identifies key users of productivity statistics, and highlights essential considerations for their interpretation. Finally, the document addresses the review process for quarterly and annual productivity measures and recent program improvements.Release date: 2024-06-05
- Articles and reports: 36-28-0001202301200006Description: Canada and the United States share a deep economic relationship that contributes to most measures of their economic performances having a tight common trend over the long term. However, a notable exception is the increasing disparity in labour productivity growth between the two nations. This article summarizes recent research by Statistics Canada, focusing on the information and cultural services industry and how its competitive intensity relative to the United States has influenced the Canada-U.S. labour productivity growth gap since 2001.Release date: 2023-12-21
- Articles and reports: 36-28-0001202300400004Description: The COVID-19 pandemic affected the Canadian economy in numerous ways, one of which was changing the relationship between growth in production, and changes in real consumption and real gross fixed capital formation (GFCF). Typically, real consumption and real GFCF are expected to progress similarly to real gross domestic product (GDP), however during the period covered by the COVID-19 pandemic, real consumption and real GFCF grew at a stronger pace than real GDP. This article illustrates how examining real income rather than real production can address this paradox. Specifically, the roles of changes in production (the use of capital, labour and multifactor productivity used to produce real GDP) and changes in non-production sources of real income growth (the trading gain and net income from abroad) are examined.Release date: 2023-05-08
- Articles and reports: 36-28-0001202201000002Description:
Rising wages and prices have characterized 2021 and 2022. Soaring unit labour costs have raised competitiveness concerns. This article examines the relationship between real wages and productivity to see whether real wage growth (growth in real total compensation per hour worked) has lagged behind labour productivity growth in recent years. It examines whether the result is sensitive to differences in the definition of real wages.
Release date: 2022-10-27 - Articles and reports: 36-28-0001202200500002Description:
The COVID-19 Pandemic has been affecting Canadians’ daily lives since the second quarter of 2020. Production and employment were cut back largely at the beginning in order to slow the spread of this contagious disease, leading to a sharp decline in income and a rise in the unemployment rate. GDP per capita of a country is often used for assessing the standard of living and its cross-country comparisons. Since 2020, Canada’s per capita GDP has averaged -1.3% per year, down from its long-term annual average of 1.2% from 1981 to 2019 and from 1.0% per year from 2010 to 2019. For a better understanding of the sources of Canada’s per capita GDP growth, this article decomposes GDP per capita into labour productivity, work intensity, employment rate, participation rate, and the share of working population. The contributions of these 5 ratios to Canada’s per capita GDP growth are examined.
Release date: 2022-05-25 - Articles and reports: 11F0019M2021007Description:
An increase in the economic participation of women has been identified as a major driver of economic growth, leading to increased interest in supporting the entrepreneurial activities of women. This paper uses newly developed data on the gender of business owners to investigate differences in labour productivity between men-owned, women-owned and equally owned enterprises. This paper uses the Canadian Employer–Employee Dynamics Database (CEEDD).
Release date: 2021-08-30 - Articles and reports: 36-28-0001202100500004Description:
The COVID-19 pandemic has changed how production occurs in the economy in two ways. One is the full or partial closure of non-essential activities such as travel, hospitality, arts and entertainment, personal services, airlines, etc. The other is the widespread shift from in-office work to working from home. This Insights article depicts labour productivity growth in Canada and its sources by industry during the COVID-19 pandemic in order to examine the implications these changes may have had on the productivity performance of the economy.
Release date: 2021-05-26 - Articles and reports: 11F0019M2020005Description:
Understanding intangible investments is essential for providing accurate measures of gross fixed capital formation (GFCF), gross domestic product (GDP) and productivity growth, and for understanding the innovation system. Statistical agencies need measures of intangible investment to produce economic statistics on aggregate activity that accurately measure concepts such as GDP, GFCF or savings. The levels of GDP, GFCF and savings will be underestimated to the extent that expenditures are incorrectly classified as intermediate inputs that are fully consumed during the period being measured—and not as investments that are not fully consumed during the period when the expenditures are incurred. Estimates for GDP and productivity growth rates may be similarly underestimated. This paper updates and expands upon the intangible capital estimates presented by Baldwin et al. (2009), who extended already measured intangibles (i.e., research and development [R&D], software, mineral exploration) to include additional asset classes consistent with international research on intangible capital measurement (see Corrado, Hulten and Sichel 2009).
Release date: 2020-02-12 - Articles and reports: 11F0019M2020002Description:
Labour productivity growth in the business sector in Canada started to decline in 2000, from 2.3% per year in the period from 1991 to 2000 to 1.0% per year in the period from 2000 to 2015. This paper examines how innovation, innovation diffusion across firms, and business dynamism affected the productivity slowdown.
Release date: 2020-01-17 - Articles and reports: 11-626-X2018084Description:
This Economic Insights article examines the changes in productivity dispersion in Canadian manufacturing—that is, the difference between the productivity performance of the most productive plants (frontier plants) and the productivity performance of all remaining plants (non frontier plants). It examines the relationship between changes in productivity dispersion, aggregate manufacturing productivity growth and exchange rate movements.
Release date: 2018-11-06
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- Articles and reports: 11F0019M2016373Description:
This paper examines how much of the slowdown in productivity growth observed in Canada’s business sector between the 1990s (1990 to 1999) and the 2000s (2000 to 2014) was due to weaker productivity growth within industries and how much was due to structural adjustment. The analysis makes use of a decomposition method that differs from many of the standard labour productivity decomposition approaches commonly found in the literature and allows the contributions of changes in the importance of individual industries to be calculated.
Release date: 2016-06-13 - Articles and reports: 11-626-X2016057Description:
This Economic Insights article addresses the extent to which immigrants contribute to economic growth. For the first time, the business ownership and job-creation activities of immigrants are addressed. A longer, more detailed study is also available.
Release date: 2016-03-21 - Articles and reports: 15-206-X2014036Description:
Leasing is an important means of gaining access to assets, of obtaining finance, and of reducing a lessee’s exposure to the risks inherent to asset ownership. A lease can be either a financial lease (capital lease) or an operating lease (capital rental). A financial lease is one where the legal owner of an asset (lessor) passes the economic ownership to the user of the asset (lessee), who then accepts the operating risks and receives the economic benefits from using the asset in a productive activity. Under an operating lease, the lessor is both the legal owner and the economic owner of the asset leased (rented), bearing the operating risks and receiving the economic benefits from the asset. The lessor transfers only the right to use the asset to the lessee.
Leasing offers firms the possibility to acquire the right to use capital assets under terms that differ from those prevailing through other financial instruments. The recording of leased assets in the Canadian System of National Accounts is ownership-based rather than user-based. The separation of capital ownership, in particular legal ownership, from the use of capital assets poses challenges to productivity measurement. To obtain consistent productivity measures at an industry level, leased and rented capital assets must be reallocated from owners’ accounts to users’ accounts. By using the General Index of Financial Information (GIFI) corporate balance sheets and detailed input-output tables, this paper tests the robustness of existing practices of data collection on leased and rented capital.
Release date: 2014-07-22 - Articles and reports: 11F0027M2014092Geography: Province or territoryDescription:
Using data from the Provincial KLEMS database, this paper asks whether provincial economies have undergone structural change in their business sectors since 2000. It does so by applying a measure of industrial change (the dissimilarity index) using measures of output (real GDP) and hours worked. The paper also develops a statistical methodology to test whether the shifts in the industrial composition of output and hours worked over the period are due to random year-over-year changes in industrial structure or long-term systematic change in the structure of provincial economies. The paper is designed to inform discussion and analysis of recent changes in industrial composition at the national level, notably, the decline in manufacturing output and the concomitant rise of resource industries, and the implications of this change for provincial economies.
Release date: 2014-05-07 - 15. The Distribution of Gross Domestic Product and Hours Worked in Canada and the United States Across Firm Size Classes ArchivedArticles and reports: 11F0027M2014088Geography: CanadaDescription:
This paper compares the relative importance of small and large firms in the business sectors of Canada and the United States from 2002 to 2008 using estimates of the contribution of small and large firms to the gross domestic product (GDP) of each country. It then makes use of estimates of labour input for comparison purposes. In this paper, small firms are defined as those with fewer than 500 employees and large firms as those with 500 or more employees.
Release date: 2014-01-08 - Articles and reports: 15-206-X2014033Description:
This paper examines and compares labour productivity in Canada and the United States for small and large firms over the period from 2002 to 2008. It quantifies the relative importance of small and large firms in Canada and the United States and measures the relative productivity levels of small versus large firms.
Small firms are relatively more important in the Canadian economy. Small firms are less productive than large firms in both countries. But the productivity disadvantage of small relative to large firms was higher in Canada.
The paper provides an estimate of the impact that these differences have on the gap in productivity levels between Canada and the United States. It first estimates the changes that would occur in Canadian aggregate labour productivity if the share of hours worked of large firms in Canada was increased to the U.S. level. It then quantifies the impact of increasing the relative productivity of small to large firms in Canada up to the relative productivity ratio of small firms to large firms that existed in the United States.
Together, decreasing the relative importance of small firms in the economy and increasing their relative productivity compared to large firms accounts for most of the gap in productivity levels between Canada and the United States in 2002. However, changes in the economy that occurred between 2002 and 2008 reduced the contribution of the small-firm sector to the gap in productivity levels.
Release date: 2014-01-08 - Articles and reports: 15-206-X2013032Description:
This paper examines differences in labour productivity across small, medium- and large-sized enterprises in Canada.
In 2008, the level of labour productivity, as measured by nominal gross domestic product per hour worked, in large businesses was greater than that for medium-sized and small businesses. This gap between large businesses relative to small and medium-sized businesses narrowed slightly during the post-2000 period. The paper also examines the impact of changes in industrial structure on labour productivity.
Release date: 2013-08-26 - Articles and reports: 11F0027M2013084Geography: CanadaDescription:
There is abundant evidence that many firms cluster together in space and that there is an association between clustering and productivity. This paper moves beyond identifying the broad effects of clustering and explores how different types of firms benefit from agglomeration. It advances research on agglomeration by showing, first, that not all firms gain to the same degree from co-location and, second, that businesses with different internal capabilities capture different forms of geographical externalities. The empirical analysis focuses on Canadian manufacturing establishments operating over the period from 1989 to 1999.
Release date: 2013-02-06 - Articles and reports: 11-626-X2012016Geography: CanadaDescription:
This article in the Economic Insights series discusses the impact of capitalization of research and development (R&D) expenditure on gross domestic product (GDP) and productivity growth. Capitalizing R&D expenditure increases the scope of investment, and hence, the level of measured capital and GDP. Because R&D expenditure accounts for a small share of GDP, R&D capitalization has little impact on GDP and labour productivity growth.
Release date: 2012-10-12 - Articles and reports: 11-626-X2011001Geography: CanadaDescription:
This Economic Insight looks at commonly-used measures that are employed to compare the relative economic performance of Canada and the United States. It is based on research undertaken at Statistics Canada aimed at improving information about how and why Canadian and U.S. economic progress differs.
Release date: 2011-12-21
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