Canada: Labor efficiency, wage per hour, and unit labor expenses, Q4 2025

Canadian Business Productivity Sees Slight Dip in Q4

In the final quarter, Canadian businesses experienced a modest 0.1% drop in labour productivity. This occurred as the reduction in hours worked was not as pronounced as the 0.2% decrease in real GDP. This outcome is a reversal from the previous quarter, when productivity climbed by 1.1% due to increased output achieved with fewer hours worked. The recent decline marks only the second time in nine quarters that productivity has fallen. Notably, productivity in goods-producing industries slipped by 0.9% after a 1.8% gain in the prior quarter, though this was partly balanced by improvements in the service sector.