Growth in labour productivity faster in Canada than in the U.S.
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For the first time since 2006, labour productivity in Canada's business sector increased in 2011 at a faster pace than it did in the United States.
Labour productivity is a measure of real GDP for each hour worked. Gains in productivity occur when the production of goods and services increases faster than the volume of work dedicated to their production.
In 2011, labour productivity in the Canadian business sector increased 0.8%, after rising 1.5% in 2010. In comparison, productivity in the United States increased 0.2% for 2011, well below the .0% increase the year before.
The gap in productivity between the Canada and the United States in 2011 was mostly the result of differences in the growth of economic output among businesses. Although it slowed in both countries in 2011, growth in real GDP was higher among Canadian businesses (2.6%) than among their American counterparts (2.2%). The two countries had similar increases in the number of hours worked.
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