Canadian Industry Statistics (CIS)
Labour Productivity
Manufacturing (NAICS 31-33)
Under this topic you will find an index of labour productivity for Canada's
Manufacturing (NAICS 31-33)
sector. You can use this information to identify trends in
labour-productivity within the subsector and to gain insight into factors that
affect it, such as innovation, efficiency and labour market flexibility.
Indices on labour
productivity for the Manufacturing (NAICS 31-33)
sector are unavailable.
However, Statistics Canada publishes an index for the combination of the
Finance and Insurance (NAICS 52), Real Estate and Rental and Leasing (NAICS 53)
and Management of Companies and Enterprises (NAICS 55) business sectors.
This grouping is herein referred to as the FIRE and Management
sectors. It should be noted that the industry of owner-occupied dwellings is
excluded from this combined index.
Under this topic you will find an index of labour productivity for Canada's
Manufacturing (NAICS 31-33)
sector. You can use this information to identify trends in
labour-productivity within the subsector and to gain insight into factors that
affect it, such as innovation, efficiency and labour market flexibility.
As previously noted, an index is available for the combination of the
Finance and Insurance (NAICS 52), Real Estate and Rental and Leasing (NAICS 53)
(excluding owner-occupied dwellings) and Management of Companies and
Enterprises (NAICS 55) sectors.
The graph below illustrates changes in labour productivity for the FIRE and
Management sectors as a group in comparison to the Canadian Economy between
2002 and 2011.
Labour Productivity Index: 2002-2011
FIRE and Management Sectors (NAICS 52, 53 and 55 Combined*)
The graph below illustrates changes in labour productivity for the Manufacturing
sector in comparison to the Canadian Economy between 2002 and 2011.
Labour Productivity Index: 2002-2011
Manufacturing (NAICS 31-33)
Between 2002 and 2011 labour productivity in the FIRE and Management
sectors increased 1.1% per year on average. In comparison,
labour productivity for the Canadian Economy increased
0.7% per year.
Over the most recent year, labour productivity in the FIRE and Management
sectors increased 7.2%, compared to an increase of
0.8%, for the Canadian Economy.
Between 2002 and 2011 labour productivity in the Manufacturing sector
increased 1.1% per year on average. In comparison, labour
productivity for the Canadian Economy increase 0.7%
per year.
Over the most recent year, labour productivity in the Manufacturing sector
increased 7.2%, compared to an increase of
0.8% for the Canadian Economy.
Productivity growth may occur for a number of reasons. For example, labour
productivity may rise if output increases while employment levels decrease or
stay on par. This phenomenon may occur from firms becoming more capital
intensive, that is, increasing their use of technology and capital inputs in
order to become more productive.
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Below the level of the Canadian
Economy, only the activities of the business sector are
factored into the calculation of the indices.
Labour Productivity data is only available at the NAICS sector (2-digit)
level. As a result, businesses should use caution when using the data to make
inferences about more specific industry segments.
Labour productivity measures the extent to which labour is efficiently used.
An increase in labour productivity is associated with increases to real incomes
and the standard of living for an economy. It is determined by its capital
intensity (or changes in the amount of capital per hour worked), investment in
human capital, and multi-factor productivity which includes technological
change, organizational innovation, and economies of scale.
Annual measures of labour productivity are helpful in identifying sources of
economic growth, indicate how efficiently labour is used in production, and
compute unit labour costs. However, these measurements must be interpreted
carefully, as labour productivity estimates reflect change in other factors of
production (such as capital) in addition to growth in productivity
efficiency.
Labour productivity defines its hours worked, as the total number of hours a
person spends working, whether paid or not. Time lost to strikes, lockouts,
sick leave, etc is not included but travel time, time training, and overtime
hours are comprised in the total.
At the Canadian Economy level, the labour productivity index is presented in
terms of all economic activities that have been realized within the country.
That is, it covers both the business and non-business sectors. Caution should
be used when comparing index values at the Canadian Economy level with all
other levels, which are presented in terms of the business sector only.
Labour productivity measures the extent to which labour is efficiently used.
An increase in labour productivity is associated with increases to real incomes
and the standard of living for an economy.
Changes in labour productivity may result from changes in one or more of the
following factors:
- Changes in productive labour efficiency :
- size and composition of the work force
- amount and type of employee training and work incentives offered; and
- degree to which work flows are adjusted over time.
- Changes in other factors of production:
- the level of capital investment (e.g. more efficient
equipment)
The annual indices on productivity presented in Canadian Industry
Statistics are derived using values from CANSIM Table
383-0012. As the data in this table are presented on a quarterly basis, the
average of the 4 values was computed to obtain an annual average index value.
In this section data are available for the years 2002-2011.