- Prior quarter -0.8% revised to -0.5%
- Canada labor productivity 0.4% versus -0.5% (revised) in Q3
Highlights:
- Labour productivity of Canadian businesses increased by 0.4% in the fourth quarter, marking the first gain since Q1 2022, which saw a 1.0% increase.
- This productivity growth occurred after a 0.5% decrease in the third quarter.
- Businesses were able to increase their output in the fourth quarter without increasing the hours worked, contributing to the productivity growth.
- Real GDP of businesses also rebounded by 0.4% in the fourth quarter following a 0.4% decrease in the previous quarter.
Hours worked are flat after little change in the previous quarter:
- Hours worked in the business sector remained stable in the fourth quarter, following a slight increase (+0.1%) in the previous quarter.
- The number of jobs decreased marginally (-0.1%), while average hours worked slightly increased (+0.1%) in the fourth quarter, showing little change for the second consecutive quarter.
- In the fourth quarter, goods-producing businesses saw a slight increase in hours worked (+0.1%), whereas service-producing businesses experienced a minor decrease (-0.1%).
- Out of 16 industry sectors, 7 posted increases in hours worked during the fourth quarter, with real estate services and professional services sectors showing virtually no change.
Productivity increases above goods and service producing businesses:
- Service-producing businesses experienced a productivity increase of 0.4% in the fourth quarter, marking their first increase in six quarters, with retail trade being the major contributor.
- Goods-producing businesses saw a slight productivity increase of 0.1% after four quarters of decline.
- Overall, productivity increased in 7 out of the 16 main industry sectors.
- Productivity remained unchanged in four sectors: manufacturing, finance and insurance, professional services, and administrative services.
