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December 4, 2013

Alberta and Manitoba led the pack for labour productivity

Manitoba and Alberta led the country in labour productivity in 2012 with all other provinces and territories experiencing declines.

Statistics Canada reported recently that business productivity in Canada edged up by 0.2 per cent in 2012, compared to an increase of 1.1 per cent in 2011.

Manitoba had the strongest labour productivity growth in 2012 with a 2.1 per cent gain in 2012, compared to 0.5 per cent gain in 2011.

“Real output of businesses increased at a faster pace in 2012 than in 2011,” said the report.

“Upswings in agriculture, mining and construction were the main contributors to the 3.0 per cent growth in business real GDP (Gross Domestic Product).

“During the same period, hours worked rose 0.9 per cent, primarily as a result of service-producing businesses.”

In Alberta, labour productivity increased by 0.7 per cent in 2012, which is the same rate as in 2011.

The increase in 2012 was driven by service-producing businesses, which grew by 1.2 per cent.

In goods-producing businesses, productivity decreased by 0.1 per cent.

The real GDP of businesses in Alberta was up 4.0 per cent, which was generated by increased activity in oil and gas extraction, manufacturing, construction and retail trade.

Hours worked in the business sector were up 3.3 per cent, following a 5.4 per cent increase in 2011.

Labour productivity in Quebec increased by 0.5 per cent in 2012 as the productivity of goods-producing businesses was unchanged, while productivity of service-producing businesses increased 0.5 per cent.

In Ontario, labour productivity rose 0.4 per cent in 2012, following a 0.2 per cent increase in 2011.

The real output of businesses in Ontario grew 1.5 per cent in 2012, led by manufacturing, construction, banking services, transportation services as well as professional, scientific and technical services.

Hours worked rose 1.0 per cent, with the largest increases posted by service-producing businesses.

Labour productivity in Saskatchewan fell by 0.7 per cent in 2012, after leading the country with an increase of 5.9 per cent in 2011.

Declines in the non-metallic minerals industry led to a slowing in the growth of business real GDP (2.3 per cent).

In contrast, growth in hours worked accelerated to 2.9 per cent, compared with a 0.3 per cent increase in 2011.

In B.C., labour productivity fell 1.4 per cent, compared by an increase of 2.8 per cent in 2011 as hours worked increased by 3 per cent at a faster pace than business output (+1.7 per cent).

Growth in the real GDP of businesses in the province was especially dampened by significant declines in oil and gas extraction, paper product manufacturing, and mining and oil and gas extraction support activities.

Construction, manufacturing, mining and oil and gas extraction, wholesale trade, finance and insurance, real estate as well as accommodation and food services were the main contributors to the increase in hours worked.

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