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Canadian Productivity Down In 3Q

Labor productivity of Canadian businesses fell 0.2 percent in third quarter after fluctuating between increases and declines of 0.1 percent since second quarter 2008.

OTTAWA (CP) -- The labor productivity of Canadian businesses fell 0.2 percent in the third quarter after fluctuating between increases and declines of 0.1 percent since the second quarter of 2008.

In each of the preceding five quarters, real gross domestic product (GDP) and hours worked declined in tandem and, as a result, Statistics Canada says productivity changed little.

The agency says the real GDP of businesses edged down 0.1 percent in the third quarter, following sharp declines in each of the previous three quarters.

Hours worked were up 0.2 percent, their first hike since the first quarter of 2008.

Employment and hours worked per job both grew by 0.1 percent.

StatsCan says the decline in overall business productivity was mainly a result of the goods-producing business sector, which fell 0.9 percent in the third quarter.

Nonetheless, productivity in manufacturing recorded a second straight quarterly gain.