Labor productivity in Canada falls 0.3% in Q1

By Ovunc Kutlu

ISTANBUL (AA) - Labor productivity of Canadian businesses declined 0.3% in the first quarter, compared to the previous quarter, Canada’s statistical agency said Wednesday.

The expectation for the figure was to show a 0.2% decline, following an increase of 0.2% in the fourth quarter of 2023.

Business output grew moderately in the first quarter, while hours worked rebounded to record a growth that outpaced output, according to Statistics Canada.

Real gross domestic product of businesses rose 0.1% in the January - March period, similar to the increase recorded in the October - December period, it added.

"Hours worked in the business sector increased 0.4% in the first quarter of 2024, after posting slight variations in each of the previous two quarters," the agency said in a report. "The increase in hours worked in the first quarter reflects the 0.4% growth in the number of jobs, while average hours worked were unchanged."

Productivity declined in half of the 16 industry sectors in the first quarter, according to the agency.

"Manufacturing and, to a lesser extent, professional services as well as administrative services were the main contributors to the overall decline in productivity in the first quarter," it said.

"Declines observed in these three sectors were mostly offset by strong gains in productivity in the agriculture and forestry sector and, to a lesser extent, accommodation and food services as well as transportation and warehousing services," it added.