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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, and be sure to share this with your friends and neighbours!
Sincerely,
Niels Veldhuis
President
The Fraser Institute
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