cover image: A Critical Juncture: Assessing Canada’s Productivity Performance and Future


A Critical Juncture: Assessing Canada’s Productivity Performance and Future

22 Dec 2023

Labour quality refers While labour composition contributed to the distribution of education and skills around 0.3 percentage points on average of the workforce, capital intensity refers to to labour productivity growth in Canada’s the ratio between capital and labour, and business sector over the 1999-2019 period, TFP is essentially what is left after ac- this rose to 1.1 percentage points in 2020. [...] That said, the output productivity at the onset of the pandemic gains in these sectors are also some of the followed by the sharp negative contribution highest, suggesting the strong employment in 2021 as these increases in labour inputs growth was not purely driven by labour reduced capital intensity. [...] Canada’s ity as those introduced earlier in the post- 9 International comparisons must be made at the total economy level as the OECD data does not have complete coverage of the business sector and the availability of business sector productivity data for Canada in OECD datasets is limited to the period from 2008 to 2019. [...] measured in the PMR) to the standard of better performing peers like the United Regulatory Framework States has the potential to raise GDP per capita by as much as 5.3 per cent in the Regulations are critical for protecting long-run. [...] although the data used in the study is This high concentration of resources tied now quite dated and since then the United to small firms could be contributing to States has seen the emergence of a number Canada’s poor productivity performance as of super-star firms in high-tech sectors.
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