The Economics and Statistics Division maintains archives of previous publications for accountability purposes, but makes no updates to keep these documents current with the latest data revisions from Statistics Canada. As a result, information in older documents may not be accurate. Please exercise caution when referring to older documents. For the latest information and historical data, please contact the individual listed to the right.
<--- Return to Archive
For additional information relating to this article, please contact:
September 03, 2021CANADA BUSINESS SECTOR LABOUR PRODUCTIVITY, Q2 2021 
During Q2 2021, mandatory health measures were reintroduced in most of Canada in April and May before being relaxed in June. Labour productivity of Canadian businesses increased 0.6% in Q2 2021 as the decline in hours worked (-1.1%) was greater than the decline in business output (-0.6%). This was the first increase in productivity since Q2 2020 when widescale lockdowns were imposed.
During the COVID-19 pandemic, there has been unprecedented volatility in labour productivity. Following increases of 4.1% and 12.8% in the first two quarters of 2020, labour productivity declined 9.6% in Q3 and 2.2% in Q4. Compared to Q4 2019, the last pre-pandemic quarter, business productivity is 2.6% higher. Business output was 3.6% below the pre-pandemic level while hours worked were down 6.1%.
Total compensation per hour increased 3.2% in the second quarter after declining in the previous three quarters. Compared to Q4 2019, compensation per hour worked was 7.3% higher in Q2 2021.
Unit labour costs grew 2.7% in the second quarter of the year. Unit labour costs are 4.6% higher than in Q4 2019.
Measured in US dollars, Canada’s unit labour cost increased 5.9% in Q2 2021, the fifth consecutive quarter of increase. Unit labour cost in US dollars are up 12.4% compared to Q4 2019.
Note: Labour productivity, GDP and unit labour costs cover the business sector only. Labour productivity is a measure of real GDP per hour worked. Unit labour cost is defined as the cost of workers' wages and benefits per unit of real GDP.
Statistics Canada. Table 36-10-0206-01 Indexes of business sector labour productivity, unit labour cost and related variables
<--- Return to Archive
