Growth in labour productivity is important because it is associated with economic growth, standards of living, and real incomes. It is another useful tool that we can use to compare the welfare and growth of countries. Labour productivity measures the amount of Real GDP produced by an hour of labour. Increases in labour productivity can occur from increases in the amount of machines and equipment available to workers, a higher proportion of skilled workers, increases in plant scale, changes in organizational structure, and improvements in technology (1). If labour productivity in a country is lower, it can mean that goods and services are not being produced efficiently. Countries that are able to adapt to new technologies and the way the global economy functions are more likely to have high productivity and a greater standard of living. Canada's labour productivity growth has lagged behind the US numbers for over 30 years and could be from a number of possible explanations. One reason in particular could be the sluggish innovation in the information technology industry. The tertiary sector of the global economy has been increasing in the last 30 years. However, Canada has been emphasizing focus on the primary industries such as mining and agriculture and the secondary industries like …show more content…
One way of investing in the IT sector is by promoting and incentivizing students to pursue a degree in an information technology field. A university degree is accepted as great indicator of advanced skills and talents. With more people flocking to the IT sector which includes science, math, computer science, and engineering, Canada can expect to have a generation of technological advances. Currently, Canada is producing a low percentage of graduates in these types of degrees and ranks 12th out of 16 countries according to the Conference Board of Canada
Over time Canada has had a better economic growth than Mexico and the U.S. Canada’s economy shows an annual growth rate of 3.6%, compared to the United States (3.3%) and Mexico (2.7%). (Economic Issues and Public Policies). Canadas is still a growing country, but has showed to improve t. Throughout 1994-2006 Canadas economy was shown to. From 1994-2006, the Canadian economy expanded an average of 4.1% a year which is .3% better than the U.S. and .6% better than Mexico. ("Advantages of NAFTA - Benefits of NAFTA - Positive Effects of NAFTA.").
...competition that drives productivity gains. Innovation from Canadian firms is limited, resulting in stagnant productivity improvements. The Canadian labour force is also relatively weak and the working environment relatively non competitive. In the future, Canada will be moving towards a service-oriented economy that continues to rely heavily on exports. The concept of competitiveness will become more and more crucial for the success of the Canadian economy.
During the last couple years, the Canadian economy has been transformed from on based primarily on agricultural production and the export of agricultural products and raw materials to one based primarily on its manufacturing and service sectors, as well as a mining sector of continuing importance. Canada's economy reflects a high-tech industrial society and resembles the United States, with whom it has close economic ties. This is one reason why a large percentage of the population, live by the U.
Canada runs on a market economic system. Which means it bases its production and distribution on supply and demand, rather than planing these things ahead. Canada's economy consists of two main industries called service and manufacturing. Agriculture is one of the very important industries that is in the category of both service and manufacturing. Trade is another important factor of Canada's economy. Exports make up a huge portion of Canada Gross Domestic Product (GDP). Industry, agriculture, and trade are all very important aspects that influence Canada's economic system.
Unemployment is a growing concern and faces the job crisis that is in occurring in Canada. Job employment is essential for a country to gain economic growth. The reasoning as to why Canada has a job crisis is in fact because of this imaginary line. The imaginary line divides the rich who want to get richer and average citizens who want to split it equally amongst each other. Data collected in the early 1980s by UBC economists Thomas Lemieux and Craig Riddell display that there was not any evidence of a difference in real income growth for the average citizen between 1982 and 2010 (1).
A 2009 OECD report shows that the majority of the time, earnings increase with each level of education. OECD also indicates that “there is a strong and direct relationship between investments in education, educational attainment, and economic growth.” When it comes to delivering high-quality education to its youth, Canada is strong. The Conference Board of Canada states that “Canada's strength is in delivering a high-quality education with comparatively modest spending to people between the ages of 5 and 19.” Canada is doing a good job of educating its people and rewarding their knowledge with well-paying
In any analysis of a countries economic and social breakdown, the history of those factors is imperative to recognize first and foremost. The Canadian economy notably was a relatively stable economy during most of history. The economic, social and political pressures that were brought on by World War I disrupted the Canadian economy. The government became significantly more involved in the economy as a result of the First World War and prosperity returned to some parts of Canada during the 1920s but these patterns were widely varied (Simpson, 1980). Not long after the 1920s, the rest of the world experienced severe economic crises during the 1930s known as the Great Depression.
Canada is among one of the best places to live in the world with a high standard of living and many economic benefits. Canada is ranked 3rd among 36 countries in the world as the best place to live by the Organization for Economic Co-operation and Development. It is also one of the wealthiest countries in the world with highly developed industries and a stable economy. These benefits ensure that Canada’s GDP per capita and employment rates consistently increase at a good rate. Additionally, the economic benefits provide numerous job and investment opportunities for Canadians. The Canadian government is deeply committed to providing a good quality of life as they implement a variety of services and programs for its citizens. The main economic
Introduction: Western Canada is a region within Canada containing three provinces: Alberta, Saskatchewan and Manitoba. This region is plays significant role in the economy of Canada, with its vast natural resource deposits to its rich soils and strong agriculture industry. Western Canada comprises roughly 18% of the country’s total population, with the majority of its inhabitants living in major urban centers. Provinces within the region face unique issues today and will continue to in the future and related to its industries and economy. The purpose of this paper is to identify the key economic activities within Western Canada, examine the population, its core and periphery areas, while identifying the major issues facing the region and
In the long run, an economy of a nation that seeks to gain wealth by focusing on expanding its industrial sectors through specialization and the division of labour is not only natural, but it is also beneficial for self-interests of all by creating more dexterous workers, increasing labour efficiency, and spurring innovation.
I Canada’s Poor Productivity Performance Canada is unique, since the quality of life for Canadians is phenomenal, yet, our productivity growth is quite poor in comparison to other first world countries (Alini, 2013, para. 1). Productivity growth is important, since it increases our purchasing power, and the quality of life of its citizens (Alini, 2013, para. 1). Prior to the 1980’s, Canada faced high inflation, growing public debt, internal and external trade restrictions, and high rates of taxation (Alini, 2013, para. 4). However, many benefits were awarded with the North American Free Trade Agreement (NAFTA), inflation-reducing budget cuts from the Bank of Canada, and a reduction in corporate taxation, and yet to no avail (Alini, 2013, para.
Determinants of Productivity Determinants of Productivity Productivity is the quantity of output formed by one unit of production input in a unit of time. Inputs used in the production of the goods and services are the major determinants of any country’s productivity; they are also called factors of production. There are four major determinants of productivity in any country’s economy. Land: the land itself, and raw materials such as oil and minerals beneath it. The natural resources that are available without alteration or effort on the part of humans.
The economy of any country is dependent on how the country is able to harness and utilize its natural resources to ensure the success and continuity of its economy. There are various sectors in the economy; the primary sector is perhaps the most important. This is because the primary sector entails the free resources that a country has and can exploit as a means of supporting the economy. This report will be based on the Canadian economy; it will try and evaluate the Canadian primary sector. This will include an analysis of the importance of the primary sector to the Canadian economy, reason why the primary sector should be expanded or not, it will also take a look at the advantages and disadvantage of having an expanded primary sector.
Besides having similar patterns of production and living standards, Canada also adopts a market oriented economic system combines private enterprise with government regulation. • International trade makes up a large part of the Canadian economy, particularly of its natural resources. Determination of the role of the state in the management of economic life • The development of an extensive social welfare system to redress social and economic inequities, were adopted after 1945, or after the events of WW2 • Canada’s robust economic freedom rests on a judicial system with an impeccable record of independence and transparency. The government prosecutes corruption vigorously.
Historically though, the impact of technology has been to increase productivity in specific areas and in the long-term, “release” workers thereby, creating opportunities for work expansion in other areas (Mokyr 1990, p.34). The early 19th Century was marked by a rapid increase in employment on this basis: machinery transformed many workers from craftsmen to machine minders and although numbers fell relative to output – work was replaced by employment in factories (Stewart 1996, p.13).