FX.co ★ Canadian Labor Productivity Rebounds in Q3

In the third quarter of 2025, Canadian business labor productivity experienced a significant increase of 0.9% compared to the previous quarter. This rebound follows a 1.0% decline in the second quarter and surpasses the anticipated growth of 0.4%. This marks the sixth rise in the past eight quarters, largely driven by a notable recovery in business output, even as hours worked saw a slight decrease. The real GDP for businesses also improved, overcoming a previous quarter's 0.8% contraction. Productivity saw advancements in nine out of the 16 major industry sectors, with goods-producing businesses leading at +1.6% and services recording a modest gain of +0.2%. Overall, hours worked in the business sector decreased by 0.1%, with a 0.6% reduction in the goods-producing industries overshadowing a 0.2% increase in the services sector.