---
canonical_url: "https://csls.ca/ipm-archive/issue-8/recent-productivity-developments-in-canada-and-the-united-states-productivity-growth-deceleration-versus-acceleration/"
title: "Recent Productivity Developments in Canada and the United States: Productivity Growth Deceleration versus Acceleration"
author:
  name: "CSLS"
  url: "https://csls.ca/author/cslc/"
date_published: "2026-07-13T05:43:09+00:00"
date_modified: "2026-07-13T06:41:30+00:00"
post_type: "ipm"
summary: ""
ipm_issue_period:
  - "Spring 2004"
ipm_keyword:
  - "business sector"
  - "Canada"
  - "cyclical"
  - "employment"
  - "ICT"
  - "labour productivity"
  - "post-2000"
  - "productivity acceleration"
  - "productivity deceleration"
  - "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 Canada and the United States: Productivity Growth Deceleration versus Acceleration

Canonical URL: https://csls.ca/ipm-archive/issue-8/recent-productivity-developments-in-canada-and-the-united-states-productivity-growth-deceleration-versus-acceleration/

# Recent Productivity Developments in Canada and the United States: Productivity Growth Deceleration versus Acceleration

[Download full PDF article](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-8-2-Sharpe.pdf)

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Cite this article as:

Sharpe, Andrew. 2004. “Recent Productivity Developments in Canada and the United States: Productivity Growth Deceleration versus Acceleration.” International Productivity Monitor, No. 8 (Spring 2004): 16–26. https://www.csls.ca/ipm-archive/issue-8/recent-productivity-developments-in-canada-and-the-united-states-productivity-growth-deceleration-versus-acceleration/

## Author:

-
Andrew Sharpe
Centre for the Study of Living Standards (CSLS)

## IPM Issue 8

Spring 2004 pp. 16–26

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## Abstract

## Résumé

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This article documents the sharp divergence in labour productivity growth between Canada and the United States after 2000, with U.S. business sector output per hour growing at an average of 4.6 per cent per year in 2001-2003 — a post-2000 acceleration — while Canada’s growth decelerated. The article attributes Canada’s weaker performance to its labour market: employment declined in the United States but grew strongly in Canada, absorbing output gains and dampening measured productivity growth. The author argues Canada’s productivity underperformance is largely cyclical and should reverse as the economy recovers.

Cet article documente la forte divergence de la croissance de la productivité du travail entre le Canada et les États-Unis après 2000, la production par heure du secteur des entreprises américain ayant crû à un rythme annuel moyen de 4,6 % en 2001-2003 — une accélération post-2000 — tandis que la croissance du Canada décélérait. L’article attribue la moindre performance canadienne à son marché du travail : l’emploi a diminué aux États-Unis, mais a fortement augmenté au Canada, absorbant les gains de production et atténuant la croissance mesurée de la productivité. L’auteur soutient que la sous-performance de productivité du Canada est largement cyclique et devrait s’inverser à mesure que l’économie se redresse.

[Download full PDF](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-8-2-Sharpe.pdf)
