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June 05, 2018CANADA BUSINESS SECTOR LABOUR PRODUCTIVITY, Q1 2018 
Labour productivity of Canadian businesses declined 0.3 per cent in the first quarter of 2018, reversing the gains made in the previous quarter and leaving labour productivity in Canada 0.6 per cent lower than in the first quarter of 2017. Real gross domestic product (GDP) of businesses was up 0.2 per cent in Q1 while hours worked rose 0.5 per cent. Growth in total compensation per hour worked slowed to 0.4 per cent in 2018Q1.
Unit labour cost growth also slowed to 0.7 per cent in Q1 after two consecutive quarters of growth at 1.3 per cent. The decline in labour productivity (-0.3%) combined with a gain in compensation per hour worked (+0.4%), leading to an increase in unit labour costs.
Measured in US dollars, Canada's unit labour costs increased 1.2 per cent in the quarter with the average value of the Canadian dollar relative to the US dollar rising in line on top of higher unit labour costs for the quarter. Unit labour costs in US dollars have increased 7.1 per cent since Q1 2017.
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. Table 36-10-0206-01 Indexes of business sector labour productivity, unit labour cost and related variables
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