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May 19, 2017HOURS WORKED AND LABOUR PRODUCTIVITY, 2016 [PRELIMINARY] Statistics Canada has released preliminary labour productivity accounts for the provinces for 2016, no revisions to data for previous years was made. The data is consistent with the preliminary GDP by industry estimates released on May 1, 2017.
For 2016, Nova Scotia's labour productivity in the business sector increased by 0.8 per cent following growth of 2.3 per cent in 2015 and 1.5 per cent in 2014. Canada's labour productivity in the business sector increased 0.4 per cent in 2016 offsetting the decline of 0.4 per cent that occurred in 2015. In Nova Scotia, 35.6 dollars (chained 2007) of GDP are produced per hour of work and in Canada 50.0 dollars per hour.
In 2016, Nova Scotia's real labour productivity in the business sector (chained $2007 dollars per hour worked) grew by 0.8 per cent as real output was up 0.9 per cent and hours worked were down 0.2 per cent. The goods-producing sector productivity rose 1.4 per cent, while productivity in the service sector was up 0.9 per cent. Productivity in Canada was up 0.9 per cent in the goods sector and up 0.7 for the service sector.
Business sector productivity increased in eight provinces in 2016 with a decline of 1.1 per cent in Alberta and no change in Saskatchewan. Prince Edward Island reported the largest increases in labour productivity due to output increasing in major sectors of construction, manufacturing, trade, finance, insurance and real estate. Newfoundland and Labrador had labour productivity growth of 4.7 per cent due to higher production of oil and gas.
Hours worked in the business sector rose in only four provinces in 2016. Alberta reported a 4.4 per cent decline with the forest fires in Fort McMurray area resulting in a loss of 9.7 million work hours in the province. Hours increased in New Brunswick, Quebec, Ontario and British Columbia.
Compensation per hour of work in the business sector was up 1.4 per cent in Nova Scotia to $25.27. Total compensation for business sector industries was up 1.2 per cent and hours worked were down 0.2 per cent. Compensation per hour worked was up in all the provinces, except Alberta. Compensation per hour of work increased 1.4 per cent in Canada in 2016.
With compensation per hour worked (+1.4 per cent) rising faster than labour productivity (+0.8 per cent), the unit labour cost (dollars per unit of real GDP) was up in Nova Scotia by 0.3 per cent in 2016. Unit labour costs were up for all provinces except Newfoundland and Labrador and Manitoba, with an increase of 0.9 per cent for Canada. Unit labour costs in US dollars were down for all provinces.
Within Nova Scotia, labour productivity of goods sector was up 1.4 per cent with increases in manufacturing (+7.0%), construction (+1.9%) and mining, oil and gas extraction (+2.7%) and decreases in agriculture, forestry, fishing and hunting (-4.7%) and utilities (-8.4%). Business services labour productivity increased 0.9 per cent in 2016 with productivity rising in 6 subsectors and declining in 5 subsectors.
For more information, see Statistics Canada CANSIM series numbers 383-0031 to 383-0033
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