--- canonical_url: "https://csls.ca/ipm-archive/ipm-issue-40/pay-and-productivity-in-canada-growing-together-only-slower-than-ever/" title: "Pay and Productivity in Canada: Growing Together, Only Slower than Ever" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-13T07:53:20+00:00" date_modified: "2026-07-13T07:53:20+00:00" post_type: "ipm" summary: "" ipm_issue_period: - "Spring 2021" ipm_keyword: - "1961-2019" - "Business Council of British Columbia" - "business cycles" - "Canada" - "labour share" - "pay" - "productivity" - "total labour compensation" - "wages" ipm_research_theme: - "Labour" ipm_country_focus: - "Canada" featured_image: "https://csls.ca/wp-content/uploads/2026/06/IPM_50_banner.webp" status: "publish" --- # Pay and Productivity in Canada: Growing Together, Only Slower than Ever Canonical URL: https://csls.ca/ipm-archive/ipm-issue-40/pay-and-productivity-in-canada-growing-together-only-slower-than-ever/ # Pay and Productivity in Canada: Growing Together, Only Slower than Ever [Download full PDF article](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-40-1-Williams.pdf) Cite this article × Cite this article as: Williams, David. 2021. “Pay and Productivity in Canada: Growing Together, Only Slower than Ever.” International Productivity Monitor, No. 40 (Spring 2021): 3–26. https://www.csls.ca/ipm-archive/ipm-issue-40/pay-and-productivity-in-canada-growing-together-only-slower-than-ever/ ## Author: - David Williams Business Council of British Columbia ## IPM Issue 40 Spring 2021 pp. 3–26 ## 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/) [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/) [Appendix: UK Productivity Growth Rates Across Data Vintages and Studies Josh Martin Spring 2025 | IPM Issue 48 | pp. 65–73](https://csls.ca/ipm-archive/ipm-issue-48/appendix-uk-productivity-growth-rates-across-data-vintages-and-studies/) [Opportunities and Risks of Artificial Intelligence for Productivity Francesco Filippucci, Peter Gal, Katharina Laengle, Matthias Schief, Filiz Unsal Spring 2025 | IPM Issue 48 | pp. 1–26](https://csls.ca/ipm-archive/ipm-issue-48/opportunities-and-risks-of-artificial-intelligence-for-productivity/) [Using Ecosystem Accounting to Integrate the Environment in Measures of Multifactor Productivity Carl Obst Fall 2024 | IPM Issue 47 | pp. 87–108](https://csls.ca/ipm-archive/ipm-issue-47/using-ecosystem-accounting-to-integrate-the-environment-in-measures-of-multifactor-productivity/) [Eroding Natural Capital: An Alternative Explanation for the Secular Decline in Productivity Growth Christina Caron Fall 2024 | IPM Issue 47 | pp. 109–147](https://csls.ca/ipm-archive/ipm-issue-47/eroding-natural-capital-an-alternative-explanation-for-the-secular-decline-in-productivity-growth/) [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/) ## Abstract ## Résumé EN FR Copy link Email LinkedIn Pay and labour productivity growth in Canada are broadly aligned over the long run since 1961 and during the 2008-19 business cycle. The slowdown in Canada’s productivity growth rate since 2000, the general stability of the labour share, and the lack of further gains in labour’s terms of trade after 2008 largely explain the slowdown in workers’ real pay growth over the 2008-19 business cycle. Canadians should be concerned about the country’s persistently low productivity growth because it leads to low real pay growth. Canada’s policymaking institutions should prioritize understanding and accelerating productivity. La rémunération et la croissance de la productivité du travail au Canada sont globalement alignées à long terme depuis 1961 et au cours du cycle économique 2008-2019. Le ralentissement du taux de croissance de la productivité du Canada depuis 2000, la stabilité générale de la part du travail et l’absence de nouveaux gains dans les termes de l’échange du travail après 2008 expliquent largement le ralentissement de la croissance des rémunérations réelles des travailleurs au cours du cycle économique 2008-2019. Les Canadiens devraient s’inquiéter de la persistance d’une faible croissance de la productivité dans le pays, car elle entraîne une faible croissance des rémunérations réelles. [Download full PDF](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-40-1-Williams.pdf)