Canada Labor Productivity Contracts Unexpectedly

2024-06-05 12:53 By Fady Hanna 1 min. read

Labor productivity in Canada fell by 0.3% in the first quarter of 2024, following a 0.2% increase in the previous quarter and compared to market forecasts of a 0.4% growth.

Lower productivity in Q1 2024 coupled with an increase in hourly compensation by 1%, lead to a higher cost of labor by 1.3%, much higher than the previous quarter at 0.2%.

For the goods business sector, output declined QoQ by 0.1%, hours worked were unchanged, labor productivity fell by 0.1% and total compensation for hour worked rose by 0.8%.

As for the services business sector, output grew by 0.7%, hours worked rose by 0.6%, labor productivity was up 0.1% and total compensation per hour worked increased by 1.2%.



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