DAILY NEWS Mar 10, 2014 6:08 AM - 0 comments

Output up in almost every major industry group in fourth quarter of 2013

TEXT SIZE bigger text smaller text
2014-03-10

Ottawa - Labour productivity in Canadian businesses rose 1.0% in the fourth quarter of 2013, following a 0.3% gain in the third quarter, Statistics Canada reports. This was the fourth consecutive quarterly increase for 2013 and the highest growth rate since the first quarter of 2010 (+1.2%).

The real gross domestic product (GDP) of businesses grew 0.7% in the fourth quarter, echoing the results observed in the previous two quarters. Output was up in almost every major industry group in the business sector. For a second consecutive quarter, the output growth of goods-producing businesses was comparable to that of service-producing businesses.

At the same time, hours worked in the business sector fell 0.2% in the fourth quarter, after increasing 0.4% in the third quarter. Goods-producing businesses, particularly construction, were largely responsible for this decrease in hours worked, which contrasts with the situation in the previous quarter. Hours worked in service-producing businesses edged up 0.1% for a second consecutive quarter.

Both goods-producing businesses and service-producing businesses contributed to the overall productivity gain in the fourth quarter.

Productivity in goods-producing businesses increased 1.7% in the fourth quarter, after falling 0.3% in the previous quarter. Construction (+2.0%) contributed the most to the increase, while productivity also grew in utilities (+3.0%) and manufacturing (+0.6%).

Productivity in service-producing businesses rose 0.5%, a fifth straight quarterly advance. Arts and entertainment (+7.2%), finance and insurance (+0.9%), administrative services (+1.6%) and wholesale trade (+0.7%) were mainly responsible for this growth.

In comparison, the productivity of US businesses increased 0.7% in the fourth quarter, a gain similar to the one observed in the third quarter.

In Canadian businesses, labour costs per unit of production were up 0.4% in the fourth quarter, as the increase in average compensation per hour worked (+1.4%) outpaced productivity growth.

However, in US dollars, the unit labour costs of Canadian businesses fell 0.6%, a fourth consecutive quarterly decline. The average value of the Canadian dollar relative to the US dollar decreased 1.0% during the quarter, marking a fourth consecutive quarter of 1.0% depreciation or more.

By comparison, the unit labour costs of American businesses declined 0.3%, after falling 0.5% in the third quarter.

Annual 2013

Labour productivity in Canadian businesses rose 1.0% in 2013, after remaining flat in 2012. In comparison, productivity growth in American businesses was also up 1.0% in 2013.

Canadian businesses increased their real output (+2.1%) at a slightly faster pace in 2013 than in 2012, while hours worked (+1.1%) continued to rise, albeit at a slower pace than in each of the three previous years.

In 2012, the real GDP of businesses (+1.7%) and hours worked (+1.8%) both grew at a comparable rate.

For 2013 as a whole, productivity increased in both goods-producing businesses (+0.5%) and service-producing businesses (+1.2%). With the exception of construction, manufacturing, wholesale trade and real estate services, productivity was up in every industry group in the business sector in 2013.

With hourly compensation (+2.4%) rising at a faster pace than productivity in 2013, the unit labour costs of Canadian businesses increased 1.3% in 2013 compared with a 3.0% gain in 2012.

However, the Canadian dollar was down an average of 3.0% in relation to the US dollar. Consequently, in American dollars, the unit labour costs of Canadian businesses fell 1.7% in 2013. In comparison, the unit labour costs of US businesses increased 0.8% in 2013.

Monitor These Topics


Horizontal ruler
Horizontal Ruler

Post A Comment

Disclaimer
Note: By submitting your comments you acknowledge that MRO Magazine has the right to reproduce, broadcast and publicize those comments or any part thereof in any manner whatsoever. Please note that due to the volume of e-mails we receive, not all comments will be published and those that are published will not be edited. However, all will be carefully read, considered and appreciated.

Your Name (this will appear with your post) *

Email Address (will not be published) *

Comments *



* mandatory fields