Labour Productivity Growth In Canada

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Recommended: Influence of government policies on Canada's labor productivity growth

Labour productivity growth plays a crucial role in driving economic growth in Canada. It is the single most important determinant of a country's per capita income in the long run. Labour productivity growth is influenced by a broad range of factors, such as trade liberalization, commodity prices, and capital to labour mix.

Despite successive government interventions intended to improve Canada's labour productivity growth, it remains sluggish compared to the United States. A large Canada-U.S. gap has developed in multifactor productivity (MFP) - a component of productivity growth that is unrelated to increased capital intensity and skills upgrading and is often interpreted as innovation. Economists cite low improvement in innovation as the explanation for Canada's stunted growth.

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Currently, the Federal Skilled Worker Program (FSWP), administered by Citizenship and Immigration Canada (CIC), supports the entry of skilled workers including senior managers in business and other sectors to meet current labour market needs. Applicants to FSWP are eligible if they meet all admissibility requirements and obtain 67 out of a possible 100 points.

To increase the number of innovative business managers, a pilot project to ascribe additional points to skilled managers who have demonstrated experience in utilizing innovative business practices and technologies will be launched. An advisory panel comprised of members from the business community and educational institutions will establish the criteria determining the threshold for these additional points, and would review this on an ongoing basis. The advisory panel will then make recommendations regarding the threshold to CIC, who is responsible for operationalizing

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