--- canonical_url: "https://csls.ca/ipm-archive/ipm-issue-10/an-analysis-of-the-labour-productivity-growth-slowdown-in-canada-since-2000/" title: "An Analysis of the Labour Productivity Growth Slowdown in Canada since 2000" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-13T06:53:22+00:00" date_modified: "2026-07-13T06:53:22+00:00" post_type: "ipm" summary: "" ipm_issue_period: - "Spring 2005" ipm_keyword: - "business sector" - "Canada" - "commodity prices" - "ICT" - "labour productivity" - "machinery and equipment" - "post-2000" - "productivity slowdown" - "United States" ipm_research_theme: - "Productivity trends and comparisons" ipm_country_focus: - "Canada" - "United States" featured_image: "https://csls.ca/wp-content/uploads/2026/06/IPM_50_banner.webp" status: "publish" --- # An Analysis of the Labour Productivity Growth Slowdown in Canada since 2000 Canonical URL: https://csls.ca/ipm-archive/ipm-issue-10/an-analysis-of-the-labour-productivity-growth-slowdown-in-canada-since-2000/ # An Analysis of the Labour Productivity Growth Slowdown in Canada since 2000 [Download full PDF article](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-10-1-Rao-Sharpe-Smith.pdf) Cite this article × Cite this article as: Rao, Someshwar, Andrew Sharpe, and Jeremy Smith. 2005. “An Analysis of the Labour Productivity Growth Slowdown in Canada since 2000.” International Productivity Monitor, No. 10 (Spring 2005): 3–23. https://www.csls.ca/ipm-archive/ipm-issue-10/an-analysis-of-the-labour-productivity-growth-slowdown-in-canada-since-2000/ ## Authors: - Someshwar Rao Innovation, Science and Economic Development Canada - Andrew Sharpe Centre for the Study of Living Standards (CSLS) - Jeremy Smith Centre for the Study of Living Standards (CSLS) ## IPM Issue 10 Spring 2005 pp. 3–23 ## Related IPM articles [Labour Productivity as a Measure of Technological Change Ulrich Kohli Fall 2025 | IPM Issue 49 | pp. 64–81](https://csls.ca/ipm-archive/ipm-issue-49/labour-productivity-as-a-measure-of-technological-change/) [The Relationship between Efficiencies Defenses for Mergers and TFP Growth Robin Shaban Fall 2025 | IPM Issue 49 | pp. 82–102](https://csls.ca/ipm-archive/ipm-issue-49/the-relationship-between-efficiencies-defenses-for-mergers-and-tfp-growth/) [Appendix: Variable Definitions and Country/Sector Coverage for Regulatory Reform Analysis Gilbert Cette, Jimmy Lopez, Giuseppe Nicoletti, Océane Vernerey Fall 2025 | IPM Issue 49 | pp. 1–18](https://csls.ca/ipm-archive/ipm-issue-49/appendix-variable-definitions-and-country-sector-coverage-for-regulatory-reform-analysis/) [The Potential Impact of Pro-competitive Regulatory Reforms on Productivity and Growth in Canada Gilbert Cette, Jimmy Lopez, Giuseppe Nicoletti, Océane Vernerey Fall 2025 | IPM Issue 49 | pp. 3–40](https://csls.ca/ipm-archive/ipm-issue-49/the-potential-impact-of-pro-competitive-regulatory-reforms-on-productivity-and-growth-in-canada/) [IPM Issue 49 Editors’ Overview Andrew Sharpe, Bart van Ark, Paul Schreyer Fall 2025 | IPM Issue 49 | pp. 1–2](https://csls.ca/ipm-archive/ipm-issue-49/) [De-industrialization and the Great Productivity Slowdown: What Comes Next? Paul Fisher Spring 2025 | IPM Issue 48 | pp. 115–138](https://csls.ca/ipm-archive/ipm-issue-48/de-industrialization-and-the-great-productivity-slowdown-what-comes-next/) [The UK Productivity Slowdown: A Review of Timing, Magnitude, and Drivers Josh Martin Spring 2025 | IPM Issue 48 | pp. 1–34](https://csls.ca/ipm-archive/ipm-issue-48/the-uk-productivity-slowdown-a-review-of-timing-magnitude-and-drivers/) [How Does Industrial Policy Impact Output, Hours and Productivity? The Canadian Experience Tim Sargent Fall 2024 | IPM Issue 47 | pp. 39–53](https://csls.ca/ipm-archive/ipm-issue-47/how-does-industrial-policy-impact-output-hours-and-productivity-the-canadian-experience/) [Accounting for the Decline of Canada’s Real GDP Per Capita since Mid-2022 Philip Smith Spring 2024 | IPM Issue 46 | pp. 83–100](https://csls.ca/ipm-archive/ipm-issue-46/accounting-for-the-decline-of-canadas-real-gdp-per-capita-since-mid-2022/) [IPM Issue 47 Editors’ Overview Andrew Sharpe, Bart van Ark Fall 2024 | IPM Issue 47 | pp. 1–2](https://csls.ca/ipm-archive/ipm-issue-47/) ## Abstract ## Résumé EN FR Copy link Email LinkedIn This article examines the puzzling slowdown in Canadian business sector labour productivity growth since 2000, falling from 2.8 per cent per year in 1996-2000 to just 0.9 per cent per year, while the United States accelerated to 3.8 per cent. The authors assess several potential explanations including weakness in ICT manufacturing, slower machinery and equipment investment growth, weaker overall economic growth, and high commodity prices. While expecting future data revisions to improve the Canadian picture somewhat, they conclude that the slowdown reflects real structural factors and that future productivity performance is largely in the hands of the private sector, supported by a competitive business climate. Cet article examine le déconcertant ralentissement de la croissance de la productivité du travail dans le secteur des entreprises canadien depuis 2000, passant de 2,8 % par année en 1996-2000 à seulement 0,9 % par année, tandis que les États-Unis accéléraient à 3,8 %. Les auteurs évaluent plusieurs explications potentielles, notamment la faiblesse du secteur manufacturier des TIC, le ralentissement de la croissance de l’investissement en machines et matériel, la plus faible croissance économique globale et la hausse des prix des produits de base. Tout en s’attendant à ce que les futures révisions des données améliorent quelque peu le tableau canadien, ils concluent que le ralentissement reflète de réels facteurs structurels et que la performance future de la productivité relève en grande partie du secteur privé, soutenu par un climat d’affaires concurrentiel. [Download full PDF](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-10-1-Rao-Sharpe-Smith.pdf)