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March 06, 2024CANADA BUSINESS SECTOR LABOUR PRODUCTIVITY, Q4 & ANNUAL 2023 
Labour productivity of Canadian businesses increased at a seasonally adjusted annualized rate of 1.7% from Q3 2023 to Q4 2023. This was the first gain in labour productivity since the Q1 of 2022 (+3.9%). Hours worked were unchanged and output was up 1.7%.
Total compensation per hour increased at a seasonally adjusted annualized rate of 1.3% in Q4 2023, the eleventh consecutive increase since the first quarter of 2021. Unit labour costs of Canadian businesses decreased at a seasonally adjusted annualized rate of 0.5% in Q4 2023. This was the first decline since the Q3 of 2020 (-5.7%).
Annual 2023
On an annual basis, labour productivity of Canadian businesses declined 1.8% in 2023, following a decline of 0.5% in 2022 and a record decline of 6.2% in 2021. The annual productivity decline in 2023 was driven by real business GDP growth (+0.6%) being lower than the growth in hours worked (+2.5%).
Hourly compensation was up 3.7% in 2023, thus unit labour costs rose 5.6% with the decline in labour productivity (-1.8%).
Statistics Canada. Table 36-10-0206-01 Indexes of business sector labour productivity, unit labour cost and related variables
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