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December 03, 2021CANADA BUSINESS SECTOR LABOUR PRODUCTIVITY, Q3 2021 
During Q3 2021, health measures were lifted in many parts of Canada.
Labour productivity of Canadian businesses fell at a seasonally adjusted annualized rate of 1.5% in Q3 2021 as hours worked rebounded by 2.9% while real business output increased by only 1.4%. Canada's labour productivity has mostly been falling in periods during which COVID restrictions were eased as a full range of industries return to normal capacity.
During the COVID-19 pandemic, there has been unprecedented volatility in labour productivity. Compared to Q4 2019, the last pre-pandemic quarter, business productivity is 0.4% higher, reflecting a 3.0% decline in real business output and a 3.4% fall in hours worked.
Total compensation per hour increased by 0.4% in the third quarter slowing from faster growth in Q2. Compared to Q4 2019, compensation per hour worked was 9.3% higher in Q3 2021.
Unit labour costs grew 1.9% in the third quarter of the year as employee compensation grew while labour productivity fell. Unit labour costs were 9.0% higher than in Q4 2019.
Measured in US dollars, Canada’s unit labour cost fell 0.7% in Q3 2021, the first decrease after five quarters of growth. Unit labour cost in US dollars were up 14.1% 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
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