--- canonical_url: "https://csls.ca/research/productivity-trends-in-the-construction-sector-a-case-of-lagging-technical-progress/" title: "Productivity Trends in the Construction Sector: A Case of Lagging Technical Progress" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-02T14:09:24+00:00" date_modified: "2026-07-02T14:09:24+00:00" post_type: "research" summary: "" post_tag: - "Canada Mortgage and Housing Corporation" - "capital productivity" - "construction sector" - "housing affordability" - "labour productivity" - "provinces" - "regression analysis" - "residential construction" - "technological change" - "total factor productivity" - "unit labour costs" country_focus: - "Canada" province_region: - "National" research_theme: - "Productivity and Economic Measurement" - "Sector/Industry Analysis" featured_image: "https://csls.ca/wp-content/uploads/2026/07/old-reports_hero_banner_bg.webp" status: "publish" --- # Productivity Trends in the Construction Sector: A Case of Lagging Technical Progress Canonical URL: https://csls.ca/research/productivity-trends-in-the-construction-sector-a-case-of-lagging-technical-progress/ # Productivity Trends in the Construction Sector: A Case of Lagging Technical Progress [Download full PDF report](https://csls.ca/pdf/csls2001-03.pdf) Cite this report × Cite this report as: Centre for the Study of Living Standards. 2001. “Productivity Trends in the Construction Sector: A Case of Lagging Technical Progress.” CSLS Research Report 2001-03. Ottawa. https://csls.ca/research/productivity-trends-in-the-construction-sector-a-case-of-lagging-technical-progress/ ## Author: - Centre for the Study of Living Standards (CSLS) Centre for the Study of Living Standards (CSLS) ## Report 2001-03 November 2001 177 pages ## Related research [Living Standards Domain of the Canadian Index of Wellbeing Andrew Sharpe, Christopher Ross November 2011 | Report 2011-17 | 124 pages](https://csls.ca/research/living-standards-domain-of-the-canadian-index-of-wellbeing-2011-17/) [Productivity: Key to Economic Success Centre for the Study of Living Standards (CSLS) March 1998 | Report 1998-01 | 99 pages](https://csls.ca/research/productivity-key-to-economic-success/) [Productivity Trends: A Canada-U.S. Comparison Centre for the Study of Living Standards (CSLS) January 1999 | Report 1999-01 | 6 pages](https://csls.ca/research/productivity-trends-a-canada-u-s-comparison/) [New Estimates of Manufacturing Productivity Growth for Canada and the United States Andrew Sharpe March 1999 | Report 1999-02 | 21 pages](https://csls.ca/research/new-estimates-of-manufacturing-productivity-growth-for-canada-and-the-united-states/) [Apprenticeship in Canada: A Training System Under Siege? 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This report provides a detailed examination of output, employment, and productivity trends in the construction sector in Canada and by province, with particular attention to the residential construction sector. It puts forth a number of variables to explain these trends and tests these explanations in a regression model. In addition, the report looks at other potential explanatory factors for which time series are not available, with particular reference to measurement issues and technical change; discusses the micro- and macro-economic environment affecting productivity performance in the construction sector; examines the prospects for productivity growth in the construction sector; and makes a number of recommendations for future work. The major conclusion is that lagging technical progress appears to lie at the root of the construction sector’s poor productivity performance. In addition, measurement problems have also likely contributed to the poor measured productivity performance in the sector. La croissance de la productivité du travail et de la productivité multifactorielle dans les secteurs de la construction totale et résidentielle au Canada a été négative au cours des deux dernières décennies. Ce rapport propose un examen détaillé des tendances de la production, de l’emploi et de la productivité dans le secteur de la construction au Canada et par province, en accordant une attention particulière au secteur de la construction résidentielle. Il avance plusieurs variables pour expliquer ces tendances et met ces explications à l’épreuve dans un modèle de régression. De plus, le rapport examine d’autres facteurs explicatifs potentiels pour lesquels des séries chronologiques ne sont pas disponibles, en accordant une attention particulière aux enjeux de mesure et au changement technique; il examine l’environnement microéconomique et macroéconomique influant sur la performance de productivité du secteur de la construction; examine les perspectives de croissance de la productivité dans ce secteur; et formule plusieurs recommandations pour des travaux futurs. La principale conclusion est que le retard du progrès technique semble être à l’origine de la faible performance de productivité du secteur de la construction. De plus, des problèmes de mesure ont probablement aussi contribué à la faible performance de productivité mesurée dans ce secteur. [Download full PDF report](https://csls.ca/pdf/csls2001-03.pdf)