Canada’s economy is falling even further behind the U.S. by these key measures
A new Statistics Canada report says Canada’s long-standing labour productivity weakness has been a key factor behind its weakening economic performance since the late 1990s. The study finds Canada’s productivity gap with the United States has widened steadily, with relative productivity falling by 26% over the period, despite temporary boosts from high commodity prices and rising work hours. Analysts warn that even recent gains in 2025 are lagging behind stronger U.S. growth, and that without a reversal, Canada’s living standards will continue to fall further behind.
