Productivity

Business sector labour productivity as measured by real gross domestic product (GDP) per hour worked.

This indicator is measured through the annual provincial program of Canadian Productivity Accounts (CPA). These accounts produce annual data on jobs, hours worked, labour compensation and a variety of related variables, such as labour productivity and unit labour cost by province and territory. For more information on labour productivity measures from the CPA please refer to Labour Productivity Measures – Provinces and Territories (Annual).

Business sector labour productivity measures real gross domestic product (GDP) per hour worked within the business sector.

GDP measures the total output created through the production of goods and services in a country during a certain period. It also measures the income earned from that production. This indicator uses annual real GDP in chained (2012) dollars.

The business sector covers Non-Financial Corporations (S11), Financial Corporations (S12), and a fraction of household sectors (S14) involved in production (personal business) and partnership. In the System of National Accounts (SNA), the North American Industry Classification System (NAICS) 814 – Private households is also categorized as being part of the business sector.

• Labour Productivity Measures – Provinces and Territories (Annual)
  • Table 36-10-0480-01 – Labour productivity and related measures by business sector industry and by non-commercial activity consistent with the industry accounts

• Labour productivity, hourly compensation and unit labour cost, second quarter 2024 (The Daily, September 5, 2024)
• Eh Sayers Episode 20 - Why Economists Are Sounding the Alarm on Productivity (The Eh Sayers Podcast, August 14, 2024)
• Understanding Canada's Innovation Paradox: Exploring linkages between innovation, technology adoption and productivity (Economic and Social Reports, July 24, 2024)
• Research to Insights: Challenges and Opportunities in Innovation, Technology Adoption and Productivity (The Daily, July 24, 2024)
• Hours worked and labour productivity in the provinces and territories (preliminary), 2023 (The Daily, May 21, 2024)
• The post-2001 productivity growth divergence between Canada and the United States: The role of the information and cultural services industry (Economic and Social Reports, December 21, 2023)
• Research to Insights: Perspectives on growth, inflation and affordability (A Presentation Series from Statistics Canada About the Economy, Environment and Society, November 16, 2023)
• Hours worked and labour productivity in the provinces and territories (preliminary), 2022 (The Daily, May 19, 2023)
• Hours worked and labour productivity in the provinces and territories (preliminary), 2021 (The Daily, May 20, 2022)
• COVID-19 impacts on productivity growth and gender differences in employment (The Daily, May 26, 2021)

Productivity gains occur when the production of goods and services grows faster than the volume of work dedicated to their production.

Economic performance, as measured by labour productivity, must be interpreted carefully, as these data reflect changes in other inputs, in particular capital, in addition to the efficiency growth of production processes. As well, growth in labour productivity is often influenced by the degree of diversity in the industrial structure. As a result, labour productivity tends to be more volatile in the smaller provinces.