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For additional information relating to this article, please contact:

Thomas StorringDirector – Economics and Statistics
Tel: 902-424-2410Email: thomas.storring@novascotia.ca

March 08, 2017
CANADA BUSINESS SECTOR LABOUR PRODUCTIVITY, Q4 2016

Labour productivity of Canadian businesses was up 0.4 per cent in the fourth quarter of 2016, a smaller quarterly gain than in the previous quarter. Labour productivity grew in both the goods (+0.7%) and services-producing (+0.1%) sectors.

Real gross domestic product (GDP) of businesses was up 0.7 per cent in Q4 while hours worked grew 0.4 per cent. The goods-producing sector had real GDP grow at 0.8 per cent with hours worked increasing 0.1 per cent while services output was up 0.6 per cent on an increase of 0.5 per cent in hours.

 

Unit labour costs were up 0.7 per cent in the fourth quarter of 2016, as the increase in labour productivity (0.4 per cent) was slower than growth in hourly compensation which rose 1.0 per cent.   Measured in US dollars, Canada's unit labour costs were down 1.5 per cent as the average value of the Canadian dollar relative to the US dollar fell 2.1 per cent in the quarter.

For 2016, labour productivity of Canadian business grew 0.7 per cent. This follows a decline of 0.5 per cent in 2015 and gains of 2.6 per cent in 2014 and 1.6 per cent in 2013.  Real GDP growth of 1.2 per cent occurred with hours worked increasing by 0.5 per cent. Productivity growth was 0.7 per cent for the goods sector and 0.8 per cent for the business service sector. Unit labour costs were up 0.9 per cent with hourly compensation increasing 1.6 per cent. Unit labour costs in US dollars were down for the fourth consecutive year.

Note: Labour productivity, GDP and, unit labour costs cover the business sector only. Labour productivity is a measure of real GDP per hour worked. Unit labour cost is defined as the cost of workers' wages and benefits per unit of real GDP.

Statistics Canada -Labour productivity, hourly compensation and unit labour cost, fourth quarter 2016



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