Canadian business labor productivity declined 0.1% quarter-on-quarter in Q4 2025, following a 1.1% increase in the prior quarter and matching forecasts. This marked the second quarterly decline in the last nine quarters. Hours worked in the business sector edged down 0.1% in the fourth quarter, after falling 0.2% in the third quarter, a slower pace than the 0.2% contraction in real gross domestic product. Goods-producing businesses drove the overall productivity decline, with manufacturing and construction being the main contributors. As labor productivity edged down, the 0.5% rise in hourly compensation led to a 0.7% increase in unit labor costs for businesses. For the full year of 2025, labor productivity was up 1.1%, supported by strong growth in the third quarter. source: Statistics Canada

Productivity in Canada increased to 104.42 points in the third quarter of 2025 from 103.48 points in the second quarter of 2025. Productivity in Canada averaged 85.58 points from 1981 until 2025, reaching an all time high of 119.00 points in the second quarter of 2020 and a record low of 62.70 points in the third quarter of 1981. This page provides - Canada Productivity - actual values, historical data, forecast, chart, statistics, economic calendar and news. Canada Productivity - data, historical chart, forecasts and calendar of releases - was last updated on March of 2026.

Productivity in Canada increased to 104.42 points in the third quarter of 2025 from 103.48 points in the second quarter of 2025. Productivity in Canada is expected to be 102.50 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Canada Productivity is projected to trend around 102.70 points in 2027, according to our econometric models.



Calendar GMT Reference Actual Previous Consensus TEForecast
2025-12-03 01:30 PM
Labor Productivity QoQ
Q3 0.9% -1.0% 0.4% 0.2%
2026-03-04 01:30 PM
Labor Productivity QoQ
Q4 -0.1% 1.1% -0.1% 0.7%


Related Last Previous Unit Reference
Average Hourly Wages 38.02 38.01 CAD Dec 2025
Employed Persons 21121.20 21146.00 Thousand Jan 2026
Employment Change -24.80 10.10 Thousand Jan 2026
Employment Rate 60.80 60.90 percent Jan 2026
Full Time Employment Chg 44.90 50.20 Thousand Jan 2026
Job Vacancies 492475.00 506490.00 Sep 2025
Participation Rate 65.00 65.40 percent Jan 2026
Labour Costs 131.71 130.84 points Dec 2025
Minimum Wages 17.60 17.20 CAD/Hour Oct 2025
Non Farm Payrolls 18240.00 18245.00 Thousand Dec 2025
Part Time Employment Chg -69.70 -41.30 Thousand Jan 2026
Population 41.65 41.26 Million Dec 2025
Labor Productivity 104.42 103.48 points Sep 2025
Unemployed Persons 1457.50 1551.70 Thousand Jan 2026
Unemployment Rate 6.50 6.80 percent Jan 2026
Average Weekly Earnings YoY 1.94 2.30 percent Dec 2025
Wages 32.87 32.52 CAD/Hour Dec 2025
Wages in Manufacturing 32.83 32.56 CAD/Hour Dec 2025
Youth Unemployment Rate 12.80 13.30 percent Jan 2026


Canada Productivity
In Canada, Productivity is the real value of output produced by a unit of labor during a certain time.
Actual Previous Highest Lowest Dates Unit Frequency
104.42 103.48 119.00 62.70 1981 - 2025 points Quarterly
SA, 2017=100

News Stream
Canadian Business Labor Productivity Declines in Q4 2025
Canadian business labor productivity declined 0.1% quarter-on-quarter in Q4 2025, following a 1.1% increase in the prior quarter and matching forecasts. This marked the second quarterly decline in the last nine quarters. Hours worked in the business sector edged down 0.1% in the fourth quarter, after falling 0.2% in the third quarter, a slower pace than the 0.2% contraction in real gross domestic product. Goods-producing businesses drove the overall productivity decline, with manufacturing and construction being the main contributors. As labor productivity edged down, the 0.5% rise in hourly compensation led to a 0.7% increase in unit labor costs for businesses. For the full year of 2025, labor productivity was up 1.1%, supported by strong growth in the third quarter.
2026-03-04
Canadian Labor Productivity Rebounds in Q3
Canadian business labor productivity rose 0.9% quarter-on-quarter in Q3 2025, rebounding from a 1.0% decline in Q2 and beating expectations of 0.4% growth. The increase marked the sixth gain in eight quarters. Real business GDP also rebounded 0.9%, reversing a 0.8% contraction in the previous quarter. Productivity advanced in nine of 16 major industry sectors, led by goods-producing businesses (+1.6%) and modest gains in services (+0.2%). Manufacturing, mining and oil and gas, agriculture, and real estate were the main contributors, while utilities declined for a second consecutive quarter. Overall hours worked in the business sector fell 0.1%, with a 0.6% drop in goods-producing industries more than offsetting a 0.2% rise in services. Wildfires in July and August had a minimal impact, reducing hours by 0.01 percentage point. Unit labour costs rose 0.3%, slowing from 0.8% in Q2, as hourly compensation increased 1.2%.
2025-12-03
Canada Labour Productivity Falls the Most Since 2022
Canadian business labor productivity fell 1.0% in Q2 2025, following a revised 0.1% fall in Q1 and missing expectations of 0.2% growth. It was the sharpest drop since Q4 2022 (-1.1%), as uncertainty surrounding international trade led businesses to reduce their output for the first time in seven quarters while hours worked continued to increase but at half the pace of the previous quarter. Notable declines were seen in utilities (-4.0%), wholesale trade (-2.6%), and manufacturing (-2.1%), while construction edged down 0.1%. Also, hourly compensation fell 0.5%, its first decline since early 2021, pushing unit labor costs up 0.5%.
2025-09-03