There has also been an over reliance on non-permanent workers in low-paid roles in services industries.
Some industries are doing better on productivity, including wholesale and retail trade, information and cultural industries, accommodation and food services, and real estate, rental, and leasing, but even though they are leading productivity growth in Canada, they are doing so at a slower pace than in the US.
“In fact, there’s only one sector that has consistently outperformed its American counterparts over the past decade and through the pandemic: finance, insurance, real estate, rental and leasing,” the report says.
Caracini and Marple say that Canadian productivity has gone from bad to worse and will require policies that promote competitiveness, fuel adoption of technology, and encourage capital investment.
“If Canada does not play to win on labour productivity, it risks a continued drop in living standards, worsening wage stagnation and a dangerous deterioration in public services,” they conclude.