Canada Productivity1981-2019 Data | 2020-2022 Forecast | Calendar | Historical

Labour productivity of Canadian businesses fell 0.1 percent in the fourth quarter of 2019, following a 0.1 percent rise in the previous period and below market expectations of a 0.1 percent gain. It was the first decline in labour productivity in a year. Both business output and hours worked were little changed. The real GDP of businesses dropped 0.1 percent (vs 0.2 percent in Q3), after rising for 13 consecutive quarters, mainly due to a decrease in goods-producing businesses, led by the manufacturing sector; and a slowdown in output growth of service-producing businesses. Considering 2019 as a whole, labour productivity of Canadian businesses rose 0.6 percent, after falling 0.1 percent in 2018. Real GDP of businesses grew 1.4 percent (vs 1.8 percent in 2018) and hours worked advanced 0.9 percent (vs 1.9 percent in 2018).

Labour productivity of Canadian businesses rose 0.2 percent in the third quarter of 2019, following a downwardly revised 0.1 percent gain the previous period but missing market expectations of a 0.8 percent increase. Hours worked slowed considerably in the third quarter (0.1 percent vs 0.9 percent in Q2), and business output growth decelerated, but nonetheless still surpassed the growth in hours worked. The real GDP of business eased (0.3 percent vs 1 percent), mainly due to a decrease in goods-producing businesses (-0.3 percent), in particular to declines in the mining, quarrying, and oil and gas extraction, and manufacturing sectors. Meantime, output growth of service-producing businesses continued at a similar pace as in the previous quarter (at 0.8 percent). The productivity increase was mainly driven by service-producing businesses (0.7 percent), as the largest contributors were real estate (2.1 percent), retail trade (1.5 percent) and wholesale trade (1 percent).

Labour productivity of Canadian businesses increased 0.2 percent in the second quarter of 2019, easing from an upwardly revised 0.4 percent gain in the first quarter and worse than market expectations of a 0.3 percent increase. Hours worked rebounded (0.8 percent vs -0.4 percent in Q1), while growth in business output also accelerated, surpassing the gain in hours worked. The real GDP of business accelerated (2.3 percent vs 1.5 percent), with mining, quarrying, and oil and gas extraction sector contributing the most to the gain. The productivity increase in the second quarter was mainly attributable to goods-producing businesses (0.6 percent) while in service-producing business declined 0.2 percent.

Labour productivity of Canadian businesses rose 0.3 percent in the first quarter of 2019, rebounding from a 0.4 percent fall in the previous period and matching market expectations. The rise in productivity reflected the decline in hours worked following seven consecutive quarterly gains, while business output remained virtually unchanged. The real GDP of business output dropped 0.1 percent for the second straight quarter, as the decrease in the output of goods-producing businesses (-0.6 percent) offset the growth in service-producing businesses (+0.4 percent). Hours worked in the business sector went down 0.3 percent, after increasing 0.4 percent in Q4. It was the first decline in hours worked in two years, as hours worked fell at a similar pace in both goods-producing (-0.3 percent) and service-producing (-0.4 percent) businesses. The increase in productivity in Q1 was due to service-producing businesses (0.7 percent) while in goods-producing businesses productivity fell 0.3 percent.