--- canonical_url: "https://csls.ca/ipm-archive/issue-4/recent-productivity-developments-in-the-united-states-and-canada-implications-for-the-canada-u-s-productivity-and-income-gaps/" title: "Recent Productivity Developments in the United States and Canada: Implications for the Canada-U.S. Productivity and Income Gaps" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-13T05:42:43+00:00" date_modified: "2026-07-13T06:38:14+00:00" post_type: "ipm" summary: "" ipm_issue_period: - "Spring 2002" ipm_keyword: - "business cycle" - "Canada" - "income gap" - "labour productivity" - "new economy" - "non-farm business sector" - "productivity gap" - "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" --- # Recent Productivity Developments in the United States and Canada: Implications for the Canada-U.S. Productivity and Income Gaps Canonical URL: https://csls.ca/ipm-archive/issue-4/recent-productivity-developments-in-the-united-states-and-canada-implications-for-the-canada-u-s-productivity-and-income-gaps/ # Recent Productivity Developments in the United States and Canada: Implications for the Canada-U.S. Productivity and Income Gaps [Download full PDF article](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-4-1-Sharpe.pdf) Cite this article × Cite this article as: Sharpe, Andrew. 2002. “Recent Productivity Developments in the United States and Canada: Implications for the Canada-U.S. Productivity and Income Gaps.” International Productivity Monitor, No. 4 (Spring 2002): 3–13. https://www.csls.ca/ipm-archive/issue-4/recent-productivity-developments-in-the-united-states-and-canada-implications-for-the-canada-u-s-productivity-and-income-gaps/ ## Author: - Andrew Sharpe Centre for the Study of Living Standards (CSLS) ## IPM Issue 4 Spring 2002 pp. 3–13 ## 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/) [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/) [Are Intangibles Running out of Steam? Bart van Ark, Klaas de Vries, Abdul Erumban Spring 2024 | IPM Issue 46 | pp. 38–59](https://csls.ca/ipm-archive/ipm-issue-46/are-intangibles-running-out-of-steam/) ## Abstract ## Résumé EN FR Copy link Email LinkedIn This article examines aggregate labour productivity trends in the United States and Canada in 2001, assessing whether the U.S. productivity acceleration of 1995–2000 represents a permanent structural shift. It finds that despite a cyclical slowdown in 2001, U.S. productivity held up better than in previous downturns, supporting the structural shift thesis. In Canada, labour productivity growth also slowed in 2001, and the article discusses the implications of these trends for the Canada-U.S. productivity and income gaps, which widened considerably during the 1990s. Cet article examine les tendances de la productivité du travail globale aux États-Unis et au Canada en 2001, en évaluant si l’accélération de la productivité américaine de 1995 à 2000 représente un changement structurel permanent. Il constate que malgré un ralentissement cyclique en 2001, la productivité américaine a mieux résisté que lors des récessions précédentes, appuyant la thèse d’un changement structurel. Au Canada, la croissance de la productivité du travail a également ralenti en 2001, et l’article examine les implications de ces tendances pour les écarts de productivité et de revenu entre le Canada et les États-Unis, qui se sont considérablement creusés au cours des années 1990. [Download full PDF](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-4-1-Sharpe.pdf)