Plain meaning
A measure of how much output is produced for a given amount of input, often labour hours.
Also called
business productivity
labour productivity
Key points
- Higher productivity can support wage growth, business investment, and stronger public finances over time.
- Productivity is affected by capital investment, skills, technology, infrastructure, competition, and management practices.
- It is not the same as working longer hours.
- Central banks, Statistics Canada, and budget documents often discuss productivity as a long-term growth factor.
Why it comes up
Productivity articles help explain economic growth, tax-base growth, wage pressure, and fiscal sustainability.