Canada’s labour productivity crept ahead by just 0.1% in the second quarter, continuing the “lacklustre” performance that began a year ago, Statistics Canada said today.

After growing by a strong 1.1% in the first quarter of 2003, productivity has been virtually flat for five consecutive quarters.

Productivity improves when gross domestic product increases more rapidly than the number of hours worked.

In the second quarter, Canada’s inflation-adjusted gross domestic product in the business sector rose 1.2%, while the number of hours worked went up an almost identical 1.1%.

“South of the border, growth in labour productivity in the American business sector outpaced that in Canada for the fifth consecutive quarter, although it slowed considerably,” StatsCan said.

Productivity increased by only 0.4% in the United States in the second quarter, less than half the rate in the first quarter. U.S. productivity has fluctuated since the third quarter of 2003.

“Despite the fact that growth in real GDP was more robust in Canada than in the United States in the second quarter, the weaker labour market south of the border allowed American businesses to post higher productivity gains than in Canada,” Statistics Canada said.