Quebec, Newfoundland lead Canada's productivity gains, says report
Labour productivity in Canada saw a modest improvement in 2024, reversing a trend of decline over the previous three years, according to a new report from Statistics Canada (StatCan).
Business productivity edged up by 0.2% last year, marking the first national increase since a series of downturns began.
"This slight upturn in productivity in 2024 occurred in a context marked by a series of interest rate cuts in the middle of the year, a slowdown in inflation and continued relatively high population growth," StatCan noted. "Overall, these three factors contributed to favourable economic conditions for business investment and production in a large part of the country in 2024."
Among provinces, Quebec and Newfoundland and Labrador were the only provinces to contribute positively to the national productivity figures.
Productivity in Quebec rebounded by 2.0%, after a 2.6% decline in 2023. StatCan credited the recovery to strong performances in professional, scientific and technical services; real estate and rental and leasing; and wholesale trade.
Newfoundland and Labrador also saw a productivity increase of 1.1%, ending a three-year streak of decline.
"This was driven by the output in the mining and oil and gas extraction sector recovering, with the Terra Nova offshore oil platform being back in operation after having shut down for several years. The construction sector also contributed to a return to productivity growth in these two provinces," according to the report.
Among territories, the productivity growth in Nunavut (+11.8%) and Northwest Territories (+5.3%) contradicted the decline in Yukon (-11.1%).
Over two-thirds (68%) of hiring managers reported an increase in employee productivity compared to the previous year, according to a report by Robert Half released in August 2024.
For employers to be able to boost worker productivity, they should start by measuring it, says Teramind, an employee activity monitoring & workforce analytics company.
To sustain and boost productivity, employers need to begin by measuring it effectively, advises Teramind, a workforce analytics and employee activity monitoring firm.
"A fully functioning productivity program involves much more than just tracking hours worked or tasks completed: it requires policy, practice, patience, and accurate data," the company noted. "Importantly, measuring employee productivity is not a one-size-fits-all process. It’s a flexible approach tailored to each company’s unique needs and goals, reassuring that it can be adapted to any business."
Teramind recommends that employers encourage their staff to:
Hours worked, wages
Across Canada, hours worked grew by 1.1% in 2024, down from a 3.3% increase the previous year, according to StatCan.
The numbers also increased for most provinces, led by Prince Edward Island (+5.9%), Nova Scotia (4.6%) and Saskatchewan (4.3%).
Quebec is the only province that recorded a decline in hours worked (-1.1%).
“The decline in hours worked in Quebec mainly reflects the slowdown in the job market in 2024,” says StatCan.
Meanwhile, the data for Northwest Territories (-7.4%) and Nunavut (-1.4%) also dropped.
Also, the average hourly wage in the total economy in Canada increased 4.6% (+$1.85 to $41.67 per hour) in 2024.
Ontario, Alberta, British Columbia, Yukon, Northwest Territories and Nunavut all have average hourly wage rates higher than the national level. The story is different for the rest of the provinces and the one territory.
“In 2024, the geographical distribution of the wage gap between the actual wage rate and the contractual wage rate was virtually unchanged,” says StatCan. “As in 2023, the highest gaps were observed in the territories, while the lowest gaps were observed in Prince Edward Island and New Brunswick.”
Overall, 74% of Canadians worry they’re not saving enough, according to a previous H&R Block Canada report.
