Hours worked and labour productivity in the provinces and the territories, 2024 (preliminary)

Quebec and Newfoundland and Labrador are the only provinces to see their productivity grow in 2024

In 2024, the productivity of businesses rose in Quebec and Newfoundland and Labrador. Productivity decreased in the eight other provinces, although the declines were less than those recorded in 2023. In the territories, productivity rose in the Northwest Territories and Nunavut, while it fell for a second consecutive year in Yukon. At the national level, business productivity edged up 0.2% in 2024, after declining over the previous three years.

Map 1: Labour productivity growth in the business sector, Canada, provinces and territories, 2024

Source: Table 36-10-0480-01, May 2025.

This slight upturn in productivity in 2024 occurred in a context marked by a series of interest rate cuts in the middle of the year, a slowdown in inflation and a continued relatively high population growth. Overall, these three factors contributed to favourable economic conditions for business investment and production in a large part of the country in 2024.

In 2024, Quebec and Newfoundland and Labrador were the only provinces that contributed to the slight growth in national productivity. Productivity in Quebec (+2.0%) rebounded, after falling 2.6% in 2023. Professional, scientific and technical services; real estate and rental and leasing; and wholesale trade were the main sectors that contributed to the recovery in productivity in this province. After three years of decline, productivity in Newfoundland and Labrador (+1.1%) also rebounded. This was driven by the output in the mining and oil and gas extraction sector recovering, with the Terra Nova offshore oil platform being back in operation after having shut down for several years. The construction sector also contributed to a return to productivity growth in these two provinces.

In 2024, productivity in goods-producing businesses increased in half of the provinces, while productivity in services-producing businesses was up in three provinces. Quebec was the only province to record productivity growth in both goods-producing and services-producing businesses in 2024.

The pace of growth of hours worked slows from 2023 in most provinces

In 2024, both business output and hours worked increased in all provinces, except for Quebec, where hours worked fell by 1.1%.

The decline in hours worked in Quebec mainly reflects the slowdown in the job market in 2024.

In most provinces, the increase in hours worked in the business sector was slower in 2024 than in 2023. In the territories, hours worked increased only in Yukon (+2.6%). Nationally, growth in hours worked slowed to 1.1% in 2024, after rising 3.3% in 2023.

Chart 1: Growth in hours worked in the business sector, Canada, provinces and territories, 2024

Source: Table 36-10-0480-01.

In most provinces and territories, hourly compensation continues to grow but at a slower pace than in 2023

In 2024, average compensation per hour worked in the business sector increased in every province and territory, except for Newfoundland and Labrador (-0.8%) and Manitoba (-0.4%).

Nationally, growth of hourly compensation slowed from 4.9% in 2023 to 3.0% in 2024, reflecting slower growth in most of the provinces and territories.

Among all the provinces and territories, only the Northwest Territories posted higher hourly compensation growth in 2024 than in the previous year.

Average hourly wage for full-time paid workers varies across Canada

In 2024, the actual wage rate—that is, the wages and salaries per hour worked—for full-time paid workers in the total economy ranged on average from $31.56 per hour in Prince Edward Island to $59.52 per hour in the Northwest Territories. Nationally, the average hourly wage in the total economy increased 4.6% (+$1.85 to $41.67 per hour) in 2024.

In 2024, the contractual wage rate—that is, wages and salaries per hour paid—in the total economy was up 4.6% (+$1.71 to $38.63 per hour). Overall, the difference between the two wage rates was stable compared with 2023. This difference reflects the absence of paid leave in hours worked and the absence of unpaid overtime in hours paid.

In 2024, the geographical distribution of the wage gap between the actual wage rate and the contractual wage rate was virtually unchanged. As in 2023, the highest gaps were observed in the territories, while the lowest gaps were observed in Prince Edward Island and New Brunswick.

Chart 2: Actual wage rate and contractual wage rate in the total economy, full-time paid workers, Canada, provinces and territories, 2024

Source: Table 36-10-0676-01.

The highest increases in jobs are in the Northern region, in relative terms, and in the Toronto region, in absolute terms

The distribution of jobs in all economic regions of Canada varied little from 2023 to 2024.

In 2024, jobs grew 34.4% in the Northern region in Saskatchewan, marking the largest relative growth (that is, in terms of percentage change) among all economic regions. The Toronto region recorded an increase of more than 70,000 jobs, marking the largest absolute growth (that is, in terms of change in number of jobs). In contrast, the Montréal region experienced the greatest loss in absolute terms, posting a decline of almost 7,000 jobs in 2024. Similarly, the Yorkton–Melville region in Saskatchewan experienced the greatest loss in relative terms, with a 7.9% decline in jobs.

Table 1: Labour productivity and other related variables for the business sector, 2024

Table 2: Goods-producing businesses and services-producing businesses, 2024