Download Estimates of the Canada-U.S. labour productivity level gap for the

Estimates of the Canada-U.S. labour productivity level gap for the total
economy differ, although they are all substantial
Canada-U.S. Labour Productivity Level Gap in 2005:
Total Economy
20.3%
17.0%
12.7%
OECD
StatCan
IC
Sources:
Industry Canada: Industry Canada compilation based on official statistics from Statistics Canada, U.S. Bureau of
Labor Statistics and U.S.Bureau of Economic Analysis
OECD: OECD Productivity database
StatCan: Maynard, Jean-Pierre, 2006, “The Comparative Level of GDP per Capita in Canada and the United States: A
Decomposition into Labour Productivity and Work Intensity Differences,” Catalogue No. 15-206-XIE, Statistics Canada.
MICRO-ECONOMIC POLICY ANALYSIS BRANCH
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Estimates of the productivity level gap for the business sector are
closer and also substantial
Canada-U.S. Labour Productivity Level Gap in 2002:
Business Sector
20.6%
17.5%
StatCan
IC
Note: Business sector excludes health, education, other government services, non-profit organizations and owner-occupied
dwellings.
Sources:
Industry Canada: Industry Canada compilation based on official statistics from Statistics Canada and U.S. Bureau of Labor
Statistics.
StatCan: Baldwin, Gu and Yan, 2006. “Relative Multifactor Productivity Levels in Canada and the United States: A Sectoral
Analysis”, Statistics Canada draft report, having not been released.
MICRO-ECONOMIC POLICY ANALYSIS BRANCH
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The Canada-U.S. productivity level gap in the business sector has trended up
over the period 1981-2000 and widened substantially since
Labour productivity Growth in Canadian and
U.S. Business Sector, 1981-2007
Relative Labour Productivity in Canada, 1991-2007
U.S.=100
100
Canada
U.S.
95
2.6
Labour Productivity
in the Canadian
Business Sector
90
85
1.9
80
1.6
75
1.0
70
Labour Productivity
Manufacturing
65
60
1981-2000
2000-2007
Source: Statistics Canada and U.S. Bureau of Labor Statistics
91
93
95
97
99
'01
'03
'05
'07
Labour productivity is defined as GDP per hour worked, PPP-based. The
series are extrapolated based on 1999 benchmarking estimates of the
Canada-U.S. labour productivity gap, using labour productivity indexes from
Statistics Canada and U.S. Bureau of Labor Statistics.
Source: Industry Canada calculation based on data from Statistics Canada
and U.S. Bureau of Labor Statistics
MICRO-ECONOMIC POLICY ANALYSIS BRANCH
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Canada’s MFP growth has been weaker compared to other OECD
countries
Multifactor Productivity in Selected OECD Countries
(1985-2006, 1985=100)
Canada
US
Japan
Italy
France
Australia
UK
140
130
120
110
100
90
85
87
89
91
93
95
97
99
'01
'03
'05
Note: MFP is based on harmonized price indexes for ICT capital
goods.
Source: OECD, Productivity Programme.
MICRO-ECONOMIC POLICY ANALYSIS BRANCH
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Canadian businesses are not as “innovative” as businesses in other
countries
MFP and R&D and M&E Intensity
in the Canadian Business Sector, 2004
(US=100)
70
Percentage of Post-Secondary Graduates in
Selected Industries
80%
University
Community college
70%
60
60%
50%
50
40%
30%
20%
40
10%
All
Agri., Constn
Industry forestry,
fishing,
10
Manu. Wholesale Retail
Canada
US
Canada
US
Canada
US
Canada
US
Canada
US
Canada
US
Canada
US
Canada
US
20
Canada
US
0%
30
Transp. Fin. and Prof.,
and
ins.
sci. and
w arehsg
tech
0
MFP
R&D Intensity
M&E Intensity
ICT Intensity
R&D intensity (2002): R&D stock (assuming a depreciation rate of
0.15) per worker.
M&E capital intensity: M&E capital stock per worker.
ICT capital intensity (2003): ICT capital stock per worker.
Source: Canadian Census of Population 2001, U.S. Census of Population
2000.
Sources: Industry Canada calculations based on data from Statistics
Canada, U.S. Bureau of Economic Analysis and OECD.
MICRO-ECONOMIC POLICY ANALYSIS BRANCH
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Canadian companies seem not to value business models based on
innovation strategies
Company Operations and Strategy Index Ranking*
(out of 121 countries)
80.0%
Ranking
U.S.
1
Germany
2
Japan
5
U.K.
9
France
11
Canada
18
Australia
23
Italy
32
1999
2001
60.0%
% establishements
Country
General Business Strategy in Canada, 1999, 2001
40.0%
20.0%
0.0%
* The company operations and strategy index measures the extent
to which company strategies and operating practices are oriented
toward innovation versus other modes of competing. The ranking is
over 121 countries.
Source: World Economic Forum, Global Competitiveness Report,
2006-2007.
MICRO-ECONOMIC POLICY ANALYSIS BRANCH
Reducing other Reducing labour Developing new Developing new
operating costs
costs
products /
production /
services
operating
techniques
Source: Employer portion of the Workplace and Employee Survey,
Statistics Canada.
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