CANADA’S PRODUCTIVITY PARADOX: Can AI help close the gap?
BY ELISABETH SAFTIUK, VICE-PRESIDENT OF POLICY AND GOVERNMENT RELATIONS, MANITOBA CHAMBERS OF COMMERCE
C anada has a productivity problem. For the same issue: we’re simply not producing as much value for every hour worked. The question is, what are we going to do about it? Productivity is about efficiency. It reflects how effectively an economy transforms its inputs — like capital investment, a supportive business environment and skilled people — into outputs such as goods, services and, ultimately, income. And at the heart of every productivity story is Manitobans, that reality hits close to home. Slower wage growth, fewer career pathways and less competitive businesses all stem from people. Productivity is powered by workforce — by the tools, technology and systems that help individuals perform at their best. It’s not an abstract metric; it’s a reflection of how effectively our skills, effort and creativity are being put to work. When productivity grows, wages and living standards can rise without longer hours or higher costs. When it stalls, as it has in Canada, businesses lose competitiveness, families feel
the strain, and the economy as a whole falls behind. Productivity is the engine of economic growth, and people are the fuel that powers it. Investments in education, skills development and workplace health enhance an individual’s ability to contribute productively to their organization. When replicated across industries and communities, these gains compound — strengthening Canada’s economy and securing long-term prosperity. Canada’s productivity challenge Fifty years ago, Canada’s productivity outpaced that of the United States. Today, according to the Organisation for Economic Co-operation and Development (OECD), we lag the U.S. by 28 per cent. Despite being one of the most educated populations in the G7, our productivity is stagnant. That’s Canada’s productivity paradox. We have exceptional talent, yet a persistent gap in productivity outcomes. The contrast is striking. In 2024, nearly two-thirds
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WINTER 2025
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