#canada #productivity #decline #tdbank #stagnation Blue Ocean CMC has been addressing Canada’s declining productivity for nearly a year, but the contributing factors have been developing over many years, even decades. The recent report from TD, authored by Beata Caranci and James Marple, stands out as one of the most critical analyses of the issue this year. It is comprehensive and clearly illustrates the problem areas. The report identifies key differences between productive and non-productive sectors and provides a striking comparison between Canada and the USA. Overall, the outlook is not optimistic. Key points from the TD report include:
"it risks a continued drop in living standards, worsening wage stagnation and a dangerous deterioration in public services"
"the goods-producing sector accounts... is now marred by a 1.2% average annual decline since 2019"
"construction is the worst of the lot with labour productivity at a near 30-year low."
"Canada has consistently lagged in high-tech service sectors Canada has consistently lagged in high-tech service sectors"
TD notes that the the COVID-19 pandemic has made a bad situation worse, that Canada has not recovered from the closures and other impacts. The report also identifies some areas of improvement, summarily. It is crucial to understand what is, and what should be, if we want, as a country, to progress at least at the same pace as other OECD countries.
It's not just about describing an economic climate. The prevailing sentiment reflects an economic situation of stagnation.
Click here for to access the full report from TD Bank:
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