By Erik Hertzberg and Mario Baker Ramirez
(Bloomberg) — Canadian companies’ output per employee declined for a second straight quarter because the commerce dispute with the U.S. intensified.
Labour productiveness fell 1% from April by June, in keeping with knowledge launched Wednesday by Statistics Canada. That’s the largest decline because the fourth quarter of 2022.
Within the enterprise sector, productiveness fell in 9 of 16 sub-sectors. Utilities, wholesale commerce and manufacturing posted “important declines,” the company mentioned, with some companies pulling again on manufacturing or exercise due to U.S. tariffs.
Canada’s languishing productiveness has been a significant supply of financial concern for years, and policymakers have known as the problem an “emergency.” A dearth of capital funding, excessive ranges of immigration and restricted competitors between companies have all been cited as potential causes.
Economies with decrease productiveness wrestle to develop rapidly with out including to inflationary pressures, as companies’ revenues are eaten by wage prices, and ensuing worth will increase are handed on to customers. Productiveness development is immediately related to a rustic’s way of life.
Canada’s financial system shrank at a 1.6% annualized tempo within the second quarter as exports dropped, in keeping with knowledge launched by the company final week. Per-capita output has stagnated to 2017 ranges.
“With uncertainty surrounding worldwide commerce, companies lowered their output,” Statistics Canada mentioned. “On the similar time, hours labored continued to extend.”
Prime Minister Mark Carney is assembly together with his cupboard in Toronto this week, and the agenda is anticipated to incorporate discussions on potential main infrastructure initiatives.
Through the election marketing campaign in April, Carney pledged to spice up the productive capability of the nation by diverting extra federal spending towards funding relatively than consumption.
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Final modified: September 3, 2025
