Recent Productivity Trends in Canada: Navigating the Twin Transitions of

The views and opinions expressed are those of the authors alone and do not represent, in any way, the views and opinions of ISED. [...] pacity and technology adoption by the Chart 5 shows that the slowdown in labour business sector, lack of scale among SMEs, productivity growth in Canada was mainly and barriers to an optimal allocation of re- due to the slowdown in MFP growth. [...] the demand for skills will evolve and what Despite the promising emergence of are the shortest paths for displaced work- the digital economy and related technolo- ers to new, more sustainable jobs will also gies, most OECD countries experienced a help safeguard productivity by improving slowdown in labour productivity growth the efficient reallocation of human capital over the decade after the gre. [...] This provides evidence ment as a percentage of GDP was similar of the benefits of investing in the digital to that of the United States, Canadian in- economy – strong productivity growth and vestment in other kinds of machinery and 11 This article follows the definition for the ICT sector used in Statistics Canada Table 36-10-0480-01. [...] Gal (2016) remain with regards to the relationship “The Best versus the Rest: The Global Produc- tivity Slowdown, Divergence across Firms and between productivity and the green and the Role of Public Policy,” Productivity Work- digitalization transitions.