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OECD Data Show Canada Lags U.S. Productivity Growth as Telecom Drags

OECD data show Canada's productivity growth has trailed the United States since the mid-1980s, with a Canadian worker producing about US$75 per hour in 2023 compared to US$97 in the United States.
Limited competition within the telecommunications industry has significantly constrained productivity growth in Canada, affecting not only the sector itself but also industries relying on information and communications technology.
Manufacturing productivity growth in Canada actually exceeds the United States, argues Linda Hasenfratz, executive chair of Linamar, citing strong investment practices and a skilled workforce with low absenteeism.
Canadians reap productivity benefits more equitably than Americans because Canada distributes income across society, whereas the United States concentrates a larger share among the top 20 per cent of households.
Canada faces challenges like smaller business size, but the federal government is investing in new sectors from critical minerals to quantum computing, building upon less-discussed manufacturing and workforce strengths.

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