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OTTAWA — Labour productivity in Canada rose in the third quarter as business output rebounded and hours worked edged down, reversing the decline recorded earlier in the year.
Statistics Canada says productivity increased 0.9 percent after falling 1.0 percent in the second quarter and remaining unchanged in the first. It was the sixth increase in eight quarters and coincided with a 0.9 percent rise in real gross domestic product for the business sector.
The agency says productivity improved in both goods-producing and service-producing industries, with gains in nine of 16 major sectors. Goods-producing industries posted the largest improvement at 1.6 percent, led by manufacturing. Mining and oil and gas extraction, agriculture and forestry, and real estate also contributed to growth, while utilities saw a sharp decline for the second straight quarter.
Hours worked in the business sector fell 0.1 percent following increases earlier in the year. Goods-producing industries saw a 0.6 percent reduction in hours, outweighing a 0.2 percent rise in the service sector. Ten major industries recorded increases, while the agriculture and forestry sector posted the largest drop at 5.7 percent.
Statistics Canada says summer wildfires reduced total hours worked by an estimated 789,000 for the quarter. The calculation is based on new Labour Force Survey questions that tracked lost work hours and overtime for July and August in all provinces except Quebec and Prince Edward Island.
Hourly compensation rose 1.2 percent in the quarter. Combined with higher productivity, unit labour costs grew 0.3 percent, slower than the 0.8 percent pace seen in the second quarter.
The agency says revisions have been applied back to early 2022 to align with updated GDP estimates and the integration of the 2022 North American Industry Classification System. Quarterly productivity and labour cost data for the fourth quarter will be released March 4, 2026.
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