--- canonical_url: "https://csls.ca/ipm-archive/ipm-issue-20/insights-into-canadas-abysmal-post-2000-productivity-performance-from-decompositions-of-labour-productivity-growth-by-industry-and-province/" title: "Insights into Canada’s Abysmal Post-2000 Productivity Performance from Decompositions of Labour Productivity Growth by Industry and Province" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-13T07:31:44+00:00" date_modified: "2026-07-13T07:31:44+00:00" post_type: "ipm" summary: "" ipm_issue_period: - "Fall 2010" ipm_keyword: - "Canada" - "decomposition" - "industry-level" - "labour productivity" - "manufacturing" - "NAICS" - "Ontario" - "post-2000" - "provincial" - "transportation equipment" ipm_research_theme: - "Productivity trends and comparisons" ipm_country_focus: - "Canada" featured_image: "https://csls.ca/wp-content/uploads/2026/06/IPM_50_banner.webp" status: "publish" --- # Insights into Canada’s Abysmal Post-2000 Productivity Performance from Decompositions of Labour Productivity Growth by Industry and Province Canonical URL: https://csls.ca/ipm-archive/ipm-issue-20/insights-into-canadas-abysmal-post-2000-productivity-performance-from-decompositions-of-labour-productivity-growth-by-industry-and-province/ # Insights into Canada’s Abysmal Post-2000 Productivity Performance from Decompositions of Labour Productivity Growth by Industry and Province [Download full PDF article](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-20-3-Sharpe-Thomson.pdf) Cite this article × Cite this article as: Sharpe, Andrew, and Eric Thomson. 2010. “Insights into Canada’s Abysmal Post-2000 Productivity Performance from Decompositions of Labour Productivity Growth by Industry and Province.” International Productivity Monitor, No. 20 (Fall 2010): 48–67. https://www.csls.ca/ipm-archive/ipm-issue-20/insights-into-canadas-abysmal-post-2000-productivity-performance-from-decompositions-of-labour-productivity-growth-by-industry-and-province/ ## Authors: - Andrew Sharpe Centre for the Study of Living Standards (CSLS) - Eric Thomson Centre for the Study of Living Standards (CSLS) ## IPM Issue 20 Fall 2010 pp. 48–67 ## Related IPM articles [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/) [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/) [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? 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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/) [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/) [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/) [Cracking the Productivity Code: An International Comparison of UK Productivity John Van Reenen, Xuyi Yang Spring 2024 | IPM Issue 46 | pp. 60–82](https://csls.ca/ipm-archive/ipm-issue-46/cracking-the-productivity-code-an-international-comparison-of-uk-productivity/) ## Abstract ## Résumé EN FR Copy link Email LinkedIn The Centre for the Study of Living Standards has released new estimates of labour, capital and multifactor productivity growth and levels at the market sector, two-digit, and three-digit NAICS industry level for the Canadian provinces during the 1997-2007 period. This article exploits this database to shed light on the nature of the slowdown in labour productivity growth in Canada after 2000. It identifies manufacturing as the sector that has accounted for most of the slowdown. Within manufacturing, transportation equipment and computers and electronics are found to be the industries that accounted for the lion’s share of the sector’s fall-off in labour productivity growth. Ontario was the province that contributed proportionately the most to the slowdown because of the concentration of manufacturing in this province. A fall in manufacturing output growth is identified as the factor most responsible for the decline in productivity growth in the sector. RÉSUMÉ Le Centre d’étude des niveaux de vie a publié de nouvelles estimations de la croissance et des niveaux de productivité du travail, du capital et multifactorielle au niveau du secteur marchand et des industries à deux et trois chiffres du SCIAN pour les provinces canadiennes au cours de la période 1997-2007. Cet article exploite cette base de données pour éclairer la nature du ralentissement de la croissance de la productivité du travail au Canada après 2000. Il cerne le secteur manufacturier comme celui qui a représenté l’essentiel du ralentissement. Au sein du secteur manufacturier, les équipements de transport et les ordinateurs et produits électroniques sont les industries ayant représenté la plus grande part du recul de la croissance de la productivité du travail du secteur. L’Ontario est la province ayant contribué proportionnellement le plus au ralentissement en raison de la concentration du secteur manufacturier dans cette province. 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