Declining productivity is the most significant threat to Canada’s standard of living Over the last decades, productivity in the Canadian economy has failed to grow at the same pace as the United States and other advanced economies. - Productivity growth in Canadian manufacturing averaged 0.88% between 2000 and 2008, well below the 3.3% rate of growth for U.S. manufacturing - As labour costs rose between 2000 and 2007, Canadian business’ per-worker investment in labour-saving machinery and processes was only 52% of the U.S. investment - 43% of new jobs come from the fastest growing 5% of all firms - Only 2.66% of Canadian services firms five years or older are able to maintain high-growth. In the U.S. that number is 4.5%. In Israel it's 5.43% - An over-reliance on NAFTA means that Canada has 10 Free Trade Agreements compared to Chile’s 52 thereby limiting potential growth Find out about the myths, the facts and what Canada has to do to restore its competitiveness. Download the full report: http://www.productivity.deloitte.ca

1. The future of productivity
Find out about the myths, the facts and what Canada has to do to restore its competitiveness.
Download the full report at productivity.deloitte.ca
Canada’s global trade-off
With an over-reliance on NAFTA, Canada has a limited amount of FTAs with the Free trade agreements
rest of the world (especially with developing nations) which limits the potential Canada 10
of future productivity growth. Take a look at how we stack up against Chile,
Chile 52
and you get an interesting picture.
5.4%
Canada’s high-growth firms…
aren’t high-growth enough
4.5%
Matched up against international competition (like the
U.S. and Israel), high-growth Canadian firms do well in
the early years. But on average, productivity growth
slows down rapidly as they mature past that point. If
Canada wants to stay competitive with
high-performance OECD countries in the future, this
simply has to change.
High-growth firms, percentage of total market
2.7%
Under 5 years
Over 5 years
0.54% 0.15% 0.54%
Canada U.S. Israel
Stacking up the numbers
on new jobs in Canada
In Canada, a disproportionate 43% of
new jobs come from the fastest growing
43% 57%
of new jobs of new jobs
95%
of all firms
5% of all firms.
5%
of all firms
20%
More productive
All Canadian companies are
losing steam to the U.S.
When it comes to productivity, U.S. businesses are
14%
More productive
outperforming their Canadian counterparts - in every
firm size. U.S. firms with more than 500 employees
are 20% more productive than their Canadian
counterparts and 14% more productive in businesses
with less than 500 employees.
Canada
U.S. Large business
Small business