cover image: Recent Productivity Trends in Canada: Navigating the Twin Transitions of


Recent Productivity Trends in Canada: Navigating the Twin Transitions of

22 Dec 2023

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.
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