Productivity

Productivity provides the foundation for improvements in a country's standard of living. Wages and salaries grow when businesses become more efficient, and higher production efficiency moderates prices of goods and services. Increased productivity is also a sign of improved management practices and a highly skilled labour force, with more workers using machines to produce goods.

Labour productivity—the measure of real GDP generated per hour of work—is a useful tool to read the strength of our work force. Strong labour productivity can mean higher rewards for our workers and lower prices for our consumers. Since higher productivity lowers prices, better wages and living standards for all Canadians can emerge as a result. Labour productivity in 2002 increased by 1.8%, surpassing the 1.2% rate set in 2001. The 2002 rate was slightly lower than the annual average increase of 2.3% observed since 1996.