Canada releases second quarter labor productivity report

By: Alexander Proudfoot  11-11-2011
Keywords: Productivity

Canada releases second quarter labor productivity report
September 12, 2011

Overall labor productivity in Canada's business sector fell 0.9 percent in the second quarter after a 0.4 percent increase in Q1, most likely due to factors that affected output more than labor, such as wildfires in Northern Alberta and a Japanese tsunami.

For the first time in two years, businesses cut back production while the amount of hours worked continued to increase, explaining the downturn in productivity in Q2.

The GDP of businesses was also down, lowering to 0.3 percent, marking the first decrease since the second quarter of 2009. The decline came after goods-producing industries retreated after six consecutive quarterly advances.

Goods-producing industries fell 2.1 percent, the highest contribution to the overall declines of business productivity in the nation. The downturn was seen in many sectors, with the largest declines in oil and gas extraction and manufacturing, which fell 3 percent and 1.8 percent, respectively.

In neighboring United States, business productivity also fell by 0.7 percent in the second quarter, marking the first time there have been two consecutive declining quarters since 2008. 

Keywords: Productivity

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