What is productivity and why is it so low in Canada? [Globe and Mail, The (Toronto, Canada)]
Bank Nova Scotia Halifax Pfd 3 Ordinary Shares (BNS)
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Source: Globe and Mail, The
situation that makes it harder to control inflation and that could erode living standards if left unaddressed. This productivity trend is not new, but the situation has gotten worse over the past decade, especially after COVID-19 took hold. “Too often, new Canadians are working in jobs that don't take advantage of the skills they already possess. And too often these people wind up stuck in low-wage, low-productivity jobs,” Bank of Canada senior deputy governor Carolyn Rogers said in a speech. Higher productivity raises company profits and lets them pay better wages without passing cost increases along to customers. But if productivity lags, the central bank and economists say, rising labour costs tend to lead to higher prices. The senior deputy governor's warning came ahead of the Bank of Canada's next interest rate announcement on April 10. Why is everyone talking about productivity lately? A look at what it means, and how we got here. What is labour productivity and how
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