Labour Productivity Costs Rise in Q2

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Numbers released this morning by Statistics Canada revealed labour costs per unit of output in Canadian businesses rose 4.1% in the second quarter, after rising 0.7% in the first quarter. As a result, unit labour costs in U.S. dollars for Canadian businesses rose 1.0%, after falling 1.1% in the previous quarter.

The agency went on to say the very rapid increase in labour unit costs reflects an unprecedented 14.3% increase in the average compensation per hour worked, which topped the historic productivity gain of 9.8%.

In the second quarter, average hourly compensation rose 16.5% in service-producing businesses and increased 9.5% in goods-producing businesses. The gain in hourly compensation was widespread across all main industrial sectors, except professional services which fell 3.5%.