Canadian business labor productivity fell 0.5% in the first quarter of 2026, following a 0.3% decline in the previous quarter and missing expectations for a 0.7% increase. The drop reflected a mild contraction in business output alongside a 0.4% increase in hours worked. Goods-producing industries led the decline, with productivity falling 1.7%, while services-producing industries posted a modest 0.3% gain. Overall, productivity decreased in 10 of the 16 major industry sectors. Construction and agriculture, forestry, fishing and hunting were the main drags, while retail trade and transportation and warehousing recorded the strongest productivity gains. As labor productivity declined and hourly compensation rose 0.9%, unit labor costs increased 1.4% during the quarter. source: Statistics Canada

Productivity in Canada decreased to 104.82 points in the fourth quarter of 2025 from 104.96 points in the third quarter of 2025. Productivity in Canada averaged 86.10 points from 1981 until 2025, reaching an all time high of 115.32 points in the second quarter of 2020 and a record low of 63.27 points in the third quarter of 1981. This page provides - Canada Productivity - actual values, historical data, forecast, chart, statistics, economic calendar and news. Canada Productivity - data, historical chart, forecasts and calendar of releases - was last updated on June of 2026.

Productivity in Canada decreased to 104.82 points in the fourth quarter of 2025 from 104.96 points in the third quarter of 2025. Productivity in Canada is expected to be 104.80 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Canada Productivity is projected to trend around 105.30 points in 2027 and 105.70 points in 2028, according to our econometric models.



Calendar GMT Reference Actual Previous Consensus TEForecast
2026-03-04 01:30 PM
Labor Productivity QoQ
Q4 -0.1% 1.1% -0.1% 0.7%
2026-06-03 12:30 PM
Labor Productivity QoQ
Q1 -0.5% -0.1% 0.7% 0.5%


Related Last Previous Unit Reference
Average Hourly Wages 38.76 38.69 CAD Apr 2026
Employed Persons 21033.70 21051.40 Thousand Apr 2026
Employment Change 87.80 -17.70 Thousand May 2026
Employment Rate 60.50 60.60 percent Apr 2026
Full Time Employment Chg 154.00 -46.70 Thousand May 2026
Job Vacancies 495125.00 492475.00 Dec 2025
Participation Rate 65.00 65.00 percent May 2026
Labour Costs 131.71 130.84 points Dec 2025
Minimum Wages 17.95 17.60 CAD/Hour Oct 2026
Non Farm Payrolls 18272.00 18304.00 Thousand Mar 2026
Part Time Employment Chg -66.20 29.00 Thousand May 2026
Population 41.65 41.26 Million Dec 2025
Labor Productivity 104.82 104.96 points Dec 2025
Unemployed Persons 1566.40 1515.20 Thousand Apr 2026
Unemployment Rate 6.60 6.90 percent May 2026
Average Weekly Earnings YoY 3.50 2.85 percent Mar 2026
Wages 32.86 32.99 CAD/Hour Mar 2026
Wages in Manufacturing 31.58 32.43 CAD/Hour Mar 2026
Youth Unemployment Rate 14.30 13.80 percent Apr 2026


Canada Productivity
In Canada, Productivity is the real value of output produced by a unit of labor during a certain time.
Actual Previous Highest Lowest Dates Unit Frequency
104.82 104.96 115.32 63.27 1981 - 2025 points Quarterly
SA, 2017=100

News Stream
Canada Labor Productivity Falls Unexpectedly
Canadian business labor productivity fell 0.5% in the first quarter of 2026, following a 0.3% decline in the previous quarter and missing expectations for a 0.7% increase. The drop reflected a mild contraction in business output alongside a 0.4% increase in hours worked. Goods-producing industries led the decline, with productivity falling 1.7%, while services-producing industries posted a modest 0.3% gain. Overall, productivity decreased in 10 of the 16 major industry sectors. Construction and agriculture, forestry, fishing and hunting were the main drags, while retail trade and transportation and warehousing recorded the strongest productivity gains. As labor productivity declined and hourly compensation rose 0.9%, unit labor costs increased 1.4% during the quarter.
2026-06-03
Canadian Business Labor Productivity Declines in Q4 2025
Canadian business labor productivity declined 0.1% quarter-on-quarter in Q4 2025, following a 1.1% increase in the prior quarter and matching forecasts. This marked the second quarterly decline in the last nine quarters. Hours worked in the business sector edged down 0.1% in the fourth quarter, after falling 0.2% in the third quarter, a slower pace than the 0.2% contraction in real gross domestic product. Goods-producing businesses drove the overall productivity decline, with manufacturing and construction being the main contributors. As labor productivity edged down, the 0.5% rise in hourly compensation led to a 0.7% increase in unit labor costs for businesses. For the full year of 2025, labor productivity was up 1.1%, supported by strong growth in the third quarter.
2026-03-04
Canadian Labor Productivity Rebounds in Q3
Canadian business labor productivity rose 0.9% quarter-on-quarter in Q3 2025, rebounding from a 1.0% decline in Q2 and beating expectations of 0.4% growth. The increase marked the sixth gain in eight quarters. Real business GDP also rebounded 0.9%, reversing a 0.8% contraction in the previous quarter. Productivity advanced in nine of 16 major industry sectors, led by goods-producing businesses (+1.6%) and modest gains in services (+0.2%). Manufacturing, mining and oil and gas, agriculture, and real estate were the main contributors, while utilities declined for a second consecutive quarter. Overall hours worked in the business sector fell 0.1%, with a 0.6% drop in goods-producing industries more than offsetting a 0.2% rise in services. Wildfires in July and August had a minimal impact, reducing hours by 0.01 percentage point. Unit labour costs rose 0.3%, slowing from 0.8% in Q2, as hourly compensation increased 1.2%.
2025-12-03