Canada's Labour Productivity Increases by 0.6% in Q4 2024

Statistics Canada reports an increase in labour productivity for Canadian businesses by 0.6% in the fourth quarter of 2024. This quarterly growth represents the highest rate recorded in the past year, with the annual productivity growth rate for 2024 also reaching 0.6%.

The productivity increase was predominantly observed in service-producing businesses, which experienced a 0.6% rise. Conversely, goods-producing businesses reported a 0.4% decline in productivity during the same period.

Further data from Statistics Canada shows that the real GDP of businesses grew by 0.8% in the fourth quarter. Additionally, the total hours worked by employees saw a minor increase, contributing to productivity improvements.

Regarding compensation, unit labour costs in businesses increased by 0.2% in the last quarter of the year, indicating a slight rise in the cost of labour relative to productivity.

These findings provide a snapshot of the economic landscape for Canadian businesses as 2024 concluded, pointing to growth in service sectors alongside challenges in goods production.