Canadian and
U.S. labour productivity tracked each other fairly closely through the 1990s, but diverged at roughly the same time as commodity prices surged.
For example, to calculate what portion of the Canada-U.S. gap in income per capita is due to Canada's lower labour productivity, we substitute
U.S. labour productivity into the equation but keep Canadian data for the other four components (hours worked, unemployment, labour force participation, and demographic structure).
Not exact matches
Raise interest rates in the
U.S. and you could kill the recovery and exacerbate the problem of long - term unemployment, with lasting effects of
labour productivity, economic growth and, yes, even government revenues.
In a presentation to the Canadian Association for Business Economics in August, Industry Canada economist Annette Ryan reiterated the familiar
productivity lament: beginning in the 1980s, growth in Canadian
labour productivity, defined as GDP per hour worked, has been steadily declining and now trails the
U.S. and the majority of other G7 countries.
Technology Change Not the Culprit in Wages Falling Behind
U.S. Productivity Gains (Naked Capitalism) Since 1973, there has been divergence between
labour productivity and the typical worker's pay in the
U.S. as
productivity has continued to grow strongly and growth in average compensation has slowed substantially.
Ireland and Norway both had higher
labour productivity than the
U.S. in 2012.
If Canada's level of
labour productivity had increased to the
U.S. level (and the other four factors had stayed the same), Canada's income per capita would have been $ 8,500 higher.
There are three very important
labour market releases out this morning: both Canada and the
U.S. published their November employment numbers, and Statistics Canada also released the
labour productivity growth figures for the July - September period.
The
U.S. Bureau of Labor Statistics has just released a comparison of manufacturing output, employment,
productivity, and unit
labour costs in 16 different industrialized countries. Here's the link: http://www.bls.gov/news.release/pdf/prod4.pdf This data confirms that Canada's manufacturing industry is in the midst of a uniquely terrible crisis. Some commentators have suggested that the sharp decline in Canadian -LSB-...]
Jim Stanford, chief economist at Unifor, the union representing Canadian auto workers, says Canadian
labour costs are on par with other developed nations, and points out we've better
productivity rates and a higher quality workforce than the
U.S.