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03.09.202612:30:00UTC+00Canada’s Labor Productivity Rebounds in Q2 2026 After Early-Year Slump

Canada’s labor productivity returned to growth in the second quarter of 2026, rising by 1.0% quarter-over-quarter after a decline earlier in the year. The latest data, updated on 3 September 2026, show a clear rebound from the first quarter of 2026, when productivity fell by 0.4% compared with the previous quarter.

On a quarter-over-quarter basis, the “actual” figure for the second quarter marks a positive turnaround from the “previous” reading in the first quarter, which had reflected a contraction in output per worker or per hour worked. The shift from a -0.4% to a 1.0% change suggests an improvement in how efficiently labor inputs are being used in the Canadian economy between the first and second quarters of 2026.

The comparison framework indicates that each quarterly reading measures productivity growth relative to the immediately preceding quarter. This means the first-quarter 2026 drop was measured against the final quarter of the prior period, while the second-quarter 2026 gain is measured against the first quarter, underscoring a notable quarter-to-quarter improvement in productivity dynamics.

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