Canada’s labor productivity declined in the fourth quarter of 2025, reversing the improvement seen earlier in the year, according to data updated on 4 March 2026. Output per worker fell by 0.1% quarter-over-quarter, compared with a 1.1% increase in the third quarter of 2025.
The figures highlight a clear loss of momentum. While the third quarter had marked a solid rebound in productivity relative to the previous quarter, the latest reading shows that those gains failed to carry through to the end of the year. The quarter-over-quarter comparison underscores a shift from strong positive growth in Q3 to a marginal contraction in Q4.
With the “actual” figure for the fourth quarter measured against the third quarter, and the “previous” quarter’s 1.1% rise measured relative to the second quarter, the data suggest that Canada’s productivity trend has weakened as 2025 drew to a close. Policymakers and businesses are likely to monitor upcoming releases closely for signs of whether this downturn is temporary or the start of a more persistent slowdown in efficiency.
