Labour productivity slightly increased in 2024, marking a modest recovery after three years of decline. The increase of 0.2% was largely driven by growth in Quebec, Newfoundland, and Labrador, while other provinces saw declines or stagnation.
Quebec and Newfoundland and Labrador were the only provinces to experience productivity growth in 2024. Quebec saw a 2.0% rebound in productivity, recovering from a 2.6% drop in 2023.
Newfoundland and Labrador also saw a 1.1% rise in productivity after three years of decline. The recovery was fueled by a rebound in the mining and oil sectors, particularly with the reopening of the Terra Nova offshore oil platform. The construction sector also contributed to the productivity gain in the province.
In contrast, eight other provinces saw declines in productivity, although these decreases were less severe than in 2023. In the territories, the Northwest Territories and Nunavut saw productivity increases, while Yukon experienced another year of decline.
While business output and hours worked increased in all provinces except Quebec, the pace of growth in 2024 was slower than in 2023. Nationally, hours worked grew by just 1.1%, down from 3.3% the previous year. Quebec’s decline in hours worked (-1.1%) was due to a slowdown in the job market, reflecting broader labour market challenges.
Yukon was the only territory to see a significant increase in hours worked, up by 2.6%, while other regions experienced more modest gains or declines.
Hourly compensation continued to rise in most provinces and territories, but at a slower pace than in 2023. The national growth rate for hourly compensation in the business sector slowed from 4.9% in 2023 to 3.0% in 2024. The Northwest Territories saw the highest growth in hourly compensation, while Newfoundland and Labrador and Manitoba experienced slight declines.
The average hourly wage for full-time paid workers in Canada increased by 4.6% to $41.67 in 2024. However, wage disparities remain across regions, with workers in the Northwest Territories earning the highest wages at $59.52 per hour, while those in Prince Edward Island earned the lowest at $31.56 per hour.
Job growth was uneven across Canada in 2024. The Northern region of Saskatchewan saw the largest relative increase in jobs, up 34.4%. The Toronto region experienced the largest absolute increase, adding over 70,000 jobs.
In contrast, Montreal saw a decrease of nearly 7,000 jobs, reflecting sectoral shifts in the city’s economy. Saskatchewan’s Yorkton–Melville region also saw a 7.9% decline in jobs, the biggest relative loss among provinces.