Labour productivity for Q2 released

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Statistics Canada released labour productivity data for the second quarter.

Labour productivity of Canadian businesses edged down 0.2 per cent in the second quarter, after posting a similar decline in the previous quarter and a 0.3 per cent increase in the fourth quarter of 2023. In the second quarter of 2024, business output and hours worked both increased at a slightly faster pace than in the previous quarter. However, growth of output was slightly lower than that of hours worked, resulting in a moderate decline in productivity in the second quarter. Real gross domestic product of businesses rose 0.5 per cent in the second quarter, following a 0.2 per cent increase in the previous quarter. This was the highest quarterly growth rate since the first quarter of 2023.

Growth in unit labour costs slows in the second quarter

With the 0.2 per cent decrease in productivity, a 0.6 per cent growth in hourly compensation resulted in a 0.8 per cent rise in unit labour costs of businesses in the second quarter. This represents a slowdown compared with the 1.3 per cent increase recorded in the first quarter. The slower pace of growth in hourly compensation compared with the previous quarter was the main factor contributing to the slowdown.