Source: The Canadian Press

A new report says labour productivity in Canada’s business sector was stagnant last year.

Statistics Canada reports labour productivity increased in Prince Edward Island, Quebec, Manitoba, British Columbia and the Yukon in 2009.

But nationally, the agency says productivity was unchanged after falling 0.8% in 2008.

StatsCan says the strongest growth in business productivity took place in Quebec in 2009, where it increased 2%.

The largest declines occurred in the resource-based economies of Newfoundland and Labrador, Saskatchewan and Alberta.

Both business output and hours worked fell in all provinces and territories except the Yukon.

Nationally, productivity of services-producing businesses increased 1.2%, while that of the goods-producing businesses remained unchanged after three straight years of decreases.

Real gross domestic product (GDP) fell 9% in goods-producing businesses and 1% in services-producing businesses.

In 2009, businesses adjusted to the economic downturn by sharply reducing hours worked. The weakness in output and in the employment market was confined mostly to the first half of the year.

Average hourly compensation in Canadian businesses rose 3% in 2009, same as the previous year. Newfoundland and Labrador (up 9.4%) had the largest increase in average hourly compensation.