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March 04, 2026CANADA BUSINESS SECTOR LABOUR PRODUCTIVITY, Q4 AND ANNUAL 2025 
Labour productivity of Canadian businesses fell at a seasonally adjusted annualized rate of 0.5% from Q3 2025 to Q4 2025, following a revised rise of 4.3% in Q3 2025. Hours worked fell by 0.5% while output dropped 1.0%.
Total compensation per hour increased at a seasonally adjusted annualized rate of 2.2% in Q4 2025. Unit labour costs of Canadian businesses rose at a seasonally adjusted annualized rate of 2.7% in Q4 2025.
Annual 2025
On an annual basis, labour productivity of Canadian businesses rose 1.1% in 2025, following a 0.7% gain in 2024. The annual productivity gain in 2025 was driven by real business GDP growth (+1.9%) being higher than the growth in hours worked (+0.8%).
Hourly compensation was up 2.3% in 2025, unit labour costs rose 1.2% with the gain in labour productivity (+1.1%).
Statistics Canada. Table 36-10-0206-01 Indexes of business sector labour productivity, unit labour cost and related variables
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