National business productivity increased 0.2% in 2024, after declining for the previous three years. However, Quebec and Newfoundland and Labrador were the only provinces that contributed to this slight rise, with productivity falling in all other provinces, according to a Statistics Canada release Tuesday.
The series of interest rate cuts last year, high population growth and slowing inflation contributed to favourable economic conditions for business investment and production in Canada, the statistical agency said.
Quebec’s productivity increased 2% in 2024 after falling 2.6% in 2023. It was mainly driven by professional, scientific and technical services; real estate and rental and leasing; and wholesale trade.
Productivity in Newfoundland and Labrador went up 1.1%, driven by output in the mining and oil and gas extraction sector, with the Terra Nova offshore oil platform being back in operation after a shut down that lasted several years.
In the territories, productivity rose in the Northwest Territories and Nunavut, while it fell for a second consecutive year in Yukon.
Business output and hours worked increased in all provinces except Quebec, where hours worked fell by 1.1%. The decline in hours worked in Quebec reflected the job market slowdown.
The average hourly wage in the business sector increased in every province and territory, except for Newfoundland and Labrador (-0.8%) and Manitoba (-0.4%), in 2024. But hourly compensation growth slowed from 4.9% in 2023 to 3% in 2024, reflecting slower growth in most of the provinces and territories.