Labour productivity in the business sector improved last year in Central Canada and Alberta but declined in the rest of the country, according to figures released Wednesday by Statistics Canada.
Nationally, productivity was up a mere 0.2% in 2012, compared to a 1.1% increase between 2010 and 2011.
"In 2012, real gross domestic product of businesses increased in every province and territory, except Newfoundland and Labrador, Nova Scotia and New Brunswick, while hours worked increased in all provinces and territories," the agency said.
Statistics Canada measures productivity in terms of real gross domestic product per hour worked.
Hourly compensation rose 3% last year in Canada overall, a somewhat smaller increase than the 3.4% seen in 2011.
The number of hours worked increased in all provinces and territories last year, and real GDP of businesses rose everywhere but Newfoundland and Labrador, Nova Scotia and New Brunswick.
Manitoba saw the greatest rise in productivity, with an increase of 2.1%, mainly owing to growth in the agriculture, mining and construction sectors. Real GDP in the business sector rose three per cent while the amount of hours worked increased 0.9%.
Newfoundland and Labrador, by contrast, saw the biggest drop in productivity, down 6.5% in 2012 largely because oil and gas production decreased that year as facilities underwent maintenance work. The number of hours worked in the province nevertheless increased, rising 3.9%, "with the greatest gains occurring in construction, transportation services and warehousing as well as real estate," Statistics Canada said.
Real GDP of businesses, however, fell 2.8%
After Manitoba, Alberta saw the second-largest productivity gains, with an increase of 0.7% in 2012 on the strength of service industries. This sector posted a 1.2% gain in productivity while goods-producing businesses saw productivity fall 0.1%
Real GDP was up 4% because of increased activity in oil and gas extraction, manufacturing, construction and retail and hours worked saw a comparable increase of 3%.
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