"Both federal and provincial governments need to play a significant role here, using the policy levers that each is best placed to apply while ensuring appropriate collaboration and co-ordination in their efforts," the OECD said in its survey of Canada published this summer.
Canada ranked sixth among 20 OECD countries in output per hour worked in 1980, according to the International Labour Organization. By 1997, it had dropped to eleventh. Now, it's seventeenth.
Canada was one of the few countries in the OECD to see its labour productivity gap with the U.S. widen since 1988 and the only member of the G-7 to have lost ground. Canadian business productivity is 74 per cent of the U.S. level. There is broad consensus that Canada's failure to achieve the U.S. standard of living is due to its poor productivity performance.
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