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Dear John,

If Canada wants to increase worker compensation, then increases in labour productivity growth must be the policy focus for all governments.

A new study published by the Fraser Institute, examining data from 1981 to 2024, finds that a one-percentage-point increase in labour productivity leads to a 0.98-percentage-point rise in hourly compensation—including wages, salaries, pension benefits, and more.

So it’s not surprising that incomes in Canada are declining during Canada’s current productivity crisis: labour productivity in Canada has increased by a mere 3.6% since 2015 compared to, for example, 4.1% in 2000 alone.

If governments in Canada want to help increase incomes and improve living standards, they must focus on policies to improve productivity.

Learn more here [[link removed]], and be sure to share this with your friends and neighbours!

Sincerely,

Niels Veldhuis

President

The Fraser Institute

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