Canada is grappling with a significant productivity issue that has seen its labour productivity grow only 0.2 per cent per year over the last decade, in stark contrast to the 1.5 per cent average growth of the previous two decades. This stagnation poses challenges across various fronts, impacting national affordability, trade competitiveness, and the sustainability of public finances. The compounded effects of reduced productivity are felt throughout daily life and hinder economic prosperity.

In response to this pressing issue, the Productivity Initiative has been established, uniting researchers, government officials, and universities to explore and promote strategies for boosting productivity growth. The initiative aims to address the root causes that have led to the decline in productivity, which is essential for overcoming other economic hurdles. Notably, the improvement in productivity is not about extending working hours or increasing worker stress; instead, it focuses on optimizing efficiency and operational capabilities.

Recommended strategies to enhance productivity include dismantling internal trade barriers that limit business expansions across provinces and revamping tax and regulatory frameworks to facilitate investment rather than hinder it. The emphasis is on fostering an environment where resources can be allocated more effectively, thereby improving overall economic performance and living standards in Canada.