--- canonical_url: "https://csls.ca/ipm-archive/ipm-issue-26/a-sectoral-analysis-of-ontarios-weak-productivity-growth/" title: "A Sectoral Analysis of Ontario’s Weak Productivity Growth" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-13T07:37:50+00:00" date_modified: "2026-07-13T07:37:50+00:00" post_type: "ipm" summary: "" ipm_issue_period: - "Fall 2013" ipm_keyword: - "Canadian dollar" - "demand" - "exchange rate" - "manufacturing" - "Ontario" - "productivity" - "productivity slowdown" - "sectoral analysis" - "Statistics Canada" ipm_research_theme: - "Sectoral and firm-level dynamics" ipm_country_focus: - "Canada" featured_image: "https://csls.ca/wp-content/uploads/2026/06/IPM_50_banner.webp" status: "publish" --- # A Sectoral Analysis of Ontario’s Weak Productivity Growth Canonical URL: https://csls.ca/ipm-archive/ipm-issue-26/a-sectoral-analysis-of-ontarios-weak-productivity-growth/ # A Sectoral Analysis of Ontario’s Weak Productivity Growth [Download full PDF article](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-26-2-Spiro.pdf) Cite this article × Cite this article as: Spiro, Peter. 2013. “A Sectoral Analysis of Ontario’s Weak Productivity Growth.” International Productivity Monitor, No. 26 (Fall 2013): 20–35. https://www.csls.ca/ipm-archive/ipm-issue-26/a-sectoral-analysis-of-ontarios-weak-productivity-growth/ ## Author: - Peter Spiro Mowat Centre for Policy Innovation, University of Toronto ## IPM Issue 26 Fall 2013 pp. 20–35 ## 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/) [Adult Skills and Productivity: New Evidence from PIAAC 2023 Dan Andrews, Balázs Égert, Christine de La Maisonneuve Fall 2025 | IPM Issue 49 | pp. 41–63](https://csls.ca/ipm-archive/ipm-issue-49/adult-skills-and-productivity-new-evidence-from-piaac-2023/) [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/) [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/) ## Abstract ## Résumé EN FR Copy link Email LinkedIn Since 2005, labour productivity growth in Ontario’s business sector has been zero, greatly under-performing the rest of Canada and being single-handedly responsible for most of what has been described as “Canada’s dismal productivity growth.” This article examines the issue through detailed sectoral data, and finds a wide range of variation underlying the average productivity growth rate. Some important sectors have maintained decent productivity growth. Other sectors, especially in manufacturing, saw the level of productivity decline significantly. Empirical evidence suggests that weak aggregate demand—due to the high Canadian dollar, the U.S. recession, and global restructuring—was the main cause of weak productivity. Weak demand led to lost economies of scale, particularly due to compositional shifts in the economy. O NE OF THE MOST WIDELY used economic Depuis 2005, la croissance de la productivité du travail dans le secteur des entreprises de l’Ontario est nulle, affichant une sous-performance considérable par rapport au reste du Canada et étant à elle seule responsable de la majeure partie de ce qu’il est convenu d’appeler la « piètre croissance de la productivité du Canada ». Cet article examine la question à travers des données sectorielles détaillées et révèle une grande variation sous-jacente au taux de croissance moyen de la productivité. Certains secteurs importants ont maintenu une croissance de productivité convenable. D’autres secteurs, notamment dans le secteur manufacturier, ont vu leur niveau de productivité baisser de façon significative. Les données probantes empiriques suggèrent que la faiblesse de la demande globale — en raison de la vigueur du dollar canadien, de la récession américaine et de la restructuration mondiale — était la principale cause de la faiblesse de la productivité. [Download full PDF](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-26-2-Spiro.pdf)