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Rosenberg Research: Bank of Canada will have to cut rates harder and faster than it thinks if productivity is not addressed<\/p>\n
Published Mar 27, 2024<\/span> \u00a0\u2022\u00a0 Last updated 1\u00a0hour ago<\/span> \u00a0\u2022\u00a0 2 minute read<\/span><\/p>\n\n\n<\/button><\/p>\n\n\n\n\nYou can save this article by registering for free here. Or sign-in if you have an account.<\/p>\n<\/div>\n<\/div>\n<\/svg><\/button><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/source><\/source><\/source><\/source><\/source><\/picture>Bank of Canada senior deputy governor Carolyn Rogers said on Tuesday it is time to \u201cbreak the emergency glass\u201d regarding the structural decline in Canadian productivity.<\/span> Photo by Adrian Wyld\/The Canadian Press<\/span><\/figcaption><\/figure>\n<\/div>\n<\/header>\n\nArticle content<\/h2>\nBy Atakan Bakiskan<\/strong><\/p>\nIn her speech on Tuesday, Bank of Canada senior deputy governor Carolyn Rogers mentioned it is time to \u201cbreak the emergency glass\u201d regarding the structural decline in Canadian productivity.<\/p>\n<\/section>\n\nArticle content<\/p>\nReal output per hour worked (labour productivity) in Canada has declined in 12 of the past 14 quarters and is now back to where it was in the fourth quarter of 2019. What is more concerning is that the productivity slump from pre-pandemic levels is not due to a handful of industries, but is quite widespread across goods-producing sectors, with one exception in agriculture\/forestry\/fishing.<\/p>\n<\/section>\n\n\nAdvertisement 2<\/p>\n\n\n\n\nThis advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n\n\n\n<\/p>\n\nTHIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY<\/p>\nSubscribe now to read the latest news in your city and across Canada.<\/p>\n\nExclusive articles from Barbara Shecter, Joe O’Connor, Gabriel Friedman, Victoria Wells and others.<\/li>\nDaily content from Financial Times, the world’s leading global business publication.<\/li>\nUnlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.<\/li>\nNational Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.<\/li>\nDaily puzzles, including the New York Times Crossword.<\/li>\n<\/ul>\n<\/div>\n\nSUBSCRIBE TO UNLOCK MORE ARTICLES<\/p>\nSubscribe now to read the latest news in your city and across Canada.<\/p>\n\nExclusive articles from Barbara Shecter, Joe O’Connor, Gabriel Friedman, Victoria Wells and others.<\/li>\nDaily content from Financial Times, the world’s leading global business publication.<\/li>\nUnlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.<\/li>\nNational Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.<\/li>\nDaily puzzles, including the New York Times Crossword.<\/li>\n<\/ul>\n<\/div>\n\nREGISTER \/ SIGN IN TO UNLOCK MORE ARTICLES<\/p>\nCreate an account or sign in to continue with your reading experience.<\/p>\n\nAccess articles from across Canada with one account.<\/li>\nShare your thoughts and join the conversation in the comments.<\/li>\nEnjoy additional articles per month.<\/li>\nGet email updates from your favourite authors.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/header>\n\n\n\n\n\nSign In or Create an Account<\/h2>\nor<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n\nArticle content<\/p>\nFor some perspective, on a per-hour basis, an average Canadian worker produces around 70 per cent of the output of a U.S. worker (down from 88 per cent in 1984). Although labour composition (workers\u2019 skills) and a lack of competition in the market are behind Canada\u2019s poor productivity performance, the major problem remains the incredibly weak capex investment (that is, capital intensity).<\/p>\nOn a volume basis, Canada has had the same level of investment in machinery, equipment and intellectual property (which are key to productivity growth) for almost the past two decades.<\/p>\nProductivity is the key to a high-growth, low-inflation environment where living standards steadily rise. Without a productivity pick-up, the Canadian economy will not have structural and sustainable economic growth.<\/p>\nCanada\u2019s suffering from low productivity has its remedies. One that Rogers proposes is for Canada to invest in industries that generate the most output per hour worked, such as mining\/oil\/gas and utilities. Although these two industries have the highest productivity levels, the growth here is not too great, with mining down 0.7 per cent from its level in the fourth quarter of 2019 and utilities down 7.4 per cent. The only productivity gain was in services (and agriculture), which consists of the least productive industries (such as accommodation\/food services and retail trade).<\/p>\n<\/section>\n\n\nAdvertisement 3<\/p>\n\n\n\n\nThis advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n\nArticle content<\/p>\nOther remedies include increasing competition, improving workers\u2019 skills, reducing excessive regulation, redressing long-standing interprovincial trade barriers, matching efficiency in the labour market and, of course, higher business investment.<\/p>\nAn immigration policy that produces positive economic multiplier impacts would also go a long way towards turning Canada\u2019s dismal productivity record around. The country is clearly either not adequately integrating new immigrants into the workforce or is not attracting workers into value-adding industries.<\/p>\n\nRecommended from Editorial<\/p>\n<\/p>\n\n <\/picture>\nBank of Canada says country faces a productivity ’emergency’<\/span><\/p>\n<\/li>\n <\/picture>\nCaps on newcomers may damage economy, group warns<\/span><\/p>\n<\/li>\n <\/picture>\nBank of Canada policymakers at odds over when they can cut rates<\/span><\/p>\n<\/li>\n<\/ol>\n<\/section>\nA declining productivity path not only keeps the economy from non-inflationary stable growth, but also drives down the neutral rate (the equilibrium interest rate where inflation is stable and there is full employment).<\/p>\nSo, as the Canadian economy\u2019s slowdown continues, inflation keeps coming down and productivity declines, the Bank of Canada will have to cut rates harder and faster than it thinks.<\/p>\nAtakan Bakiskan is an economist at independent research firm Rosenberg Research & Associates Inc., founded by David Rosenberg. To receive more of David Rosenberg\u2019s insights and analysis, you can sign up for a complimentary, one-month trial on the Rosenberg Research website<\/span>.<\/em><\/p>\n<\/section>\n\nArticle content<\/p>\n<\/section>\n\nShare this article in your social network<\/p>\n<\/section>\n<\/div>\n\nHow to fix Canada’s poor productivity performance<\/a>\n2024-03-27 14:48:54<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Breadcrumb Trail Links News Economy Rosenberg Research: Bank of Canada will have to cut rates harder and faster than it thinks if productivity is not addressed Published Mar 27, 2024…<\/p>\n","protected":false},"author":2,"featured_media":45330,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-45329","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy"],"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/45329","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=45329"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/45329\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/45330"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=45329"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=45329"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=45329"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
You can save this article by registering for free here. Or sign-in if you have an account.<\/p>\n<\/div>\n<\/div>\n
<\/svg><\/button><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/source><\/source><\/source><\/source><\/source><\/picture>Bank of Canada senior deputy governor Carolyn Rogers said on Tuesday it is time to \u201cbreak the emergency glass\u201d regarding the structural decline in Canadian productivity.<\/span> Photo by Adrian Wyld\/The Canadian Press<\/span><\/figcaption><\/figure>\n<\/div>\n<\/header>\n\nArticle content<\/h2>\nBy Atakan Bakiskan<\/strong><\/p>\nIn her speech on Tuesday, Bank of Canada senior deputy governor Carolyn Rogers mentioned it is time to \u201cbreak the emergency glass\u201d regarding the structural decline in Canadian productivity.<\/p>\n<\/section>\n\nArticle content<\/p>\nReal output per hour worked (labour productivity) in Canada has declined in 12 of the past 14 quarters and is now back to where it was in the fourth quarter of 2019. What is more concerning is that the productivity slump from pre-pandemic levels is not due to a handful of industries, but is quite widespread across goods-producing sectors, with one exception in agriculture\/forestry\/fishing.<\/p>\n<\/section>\n\n\nAdvertisement 2<\/p>\n\n\n\n\nThis advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n\n\n\n<\/p>\n\nTHIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY<\/p>\nSubscribe now to read the latest news in your city and across Canada.<\/p>\n\nExclusive articles from Barbara Shecter, Joe O’Connor, Gabriel Friedman, Victoria Wells and others.<\/li>\nDaily content from Financial Times, the world’s leading global business publication.<\/li>\nUnlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.<\/li>\nNational Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.<\/li>\nDaily puzzles, including the New York Times Crossword.<\/li>\n<\/ul>\n<\/div>\n\nSUBSCRIBE TO UNLOCK MORE ARTICLES<\/p>\nSubscribe now to read the latest news in your city and across Canada.<\/p>\n\nExclusive articles from Barbara Shecter, Joe O’Connor, Gabriel Friedman, Victoria Wells and others.<\/li>\nDaily content from Financial Times, the world’s leading global business publication.<\/li>\nUnlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.<\/li>\nNational Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.<\/li>\nDaily puzzles, including the New York Times Crossword.<\/li>\n<\/ul>\n<\/div>\n\nREGISTER \/ SIGN IN TO UNLOCK MORE ARTICLES<\/p>\nCreate an account or sign in to continue with your reading experience.<\/p>\n\nAccess articles from across Canada with one account.<\/li>\nShare your thoughts and join the conversation in the comments.<\/li>\nEnjoy additional articles per month.<\/li>\nGet email updates from your favourite authors.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/header>\n\n\n\n\n\nSign In or Create an Account<\/h2>\nor<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n\nArticle content<\/p>\nFor some perspective, on a per-hour basis, an average Canadian worker produces around 70 per cent of the output of a U.S. worker (down from 88 per cent in 1984). Although labour composition (workers\u2019 skills) and a lack of competition in the market are behind Canada\u2019s poor productivity performance, the major problem remains the incredibly weak capex investment (that is, capital intensity).<\/p>\nOn a volume basis, Canada has had the same level of investment in machinery, equipment and intellectual property (which are key to productivity growth) for almost the past two decades.<\/p>\nProductivity is the key to a high-growth, low-inflation environment where living standards steadily rise. Without a productivity pick-up, the Canadian economy will not have structural and sustainable economic growth.<\/p>\nCanada\u2019s suffering from low productivity has its remedies. One that Rogers proposes is for Canada to invest in industries that generate the most output per hour worked, such as mining\/oil\/gas and utilities. Although these two industries have the highest productivity levels, the growth here is not too great, with mining down 0.7 per cent from its level in the fourth quarter of 2019 and utilities down 7.4 per cent. The only productivity gain was in services (and agriculture), which consists of the least productive industries (such as accommodation\/food services and retail trade).<\/p>\n<\/section>\n\n\nAdvertisement 3<\/p>\n\n\n\n\nThis advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n\nArticle content<\/p>\nOther remedies include increasing competition, improving workers\u2019 skills, reducing excessive regulation, redressing long-standing interprovincial trade barriers, matching efficiency in the labour market and, of course, higher business investment.<\/p>\nAn immigration policy that produces positive economic multiplier impacts would also go a long way towards turning Canada\u2019s dismal productivity record around. The country is clearly either not adequately integrating new immigrants into the workforce or is not attracting workers into value-adding industries.<\/p>\n\nRecommended from Editorial<\/p>\n<\/p>\n\n <\/picture>\nBank of Canada says country faces a productivity ’emergency’<\/span><\/p>\n<\/li>\n <\/picture>\nCaps on newcomers may damage economy, group warns<\/span><\/p>\n<\/li>\n <\/picture>\nBank of Canada policymakers at odds over when they can cut rates<\/span><\/p>\n<\/li>\n<\/ol>\n<\/section>\nA declining productivity path not only keeps the economy from non-inflationary stable growth, but also drives down the neutral rate (the equilibrium interest rate where inflation is stable and there is full employment).<\/p>\nSo, as the Canadian economy\u2019s slowdown continues, inflation keeps coming down and productivity declines, the Bank of Canada will have to cut rates harder and faster than it thinks.<\/p>\nAtakan Bakiskan is an economist at independent research firm Rosenberg Research & Associates Inc., founded by David Rosenberg. To receive more of David Rosenberg\u2019s insights and analysis, you can sign up for a complimentary, one-month trial on the Rosenberg Research website<\/span>.<\/em><\/p>\n<\/section>\n\nArticle content<\/p>\n<\/section>\n\nShare this article in your social network<\/p>\n<\/section>\n<\/div>\n\nHow to fix Canada’s poor productivity performance<\/a>\n2024-03-27 14:48:54<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Breadcrumb Trail Links News Economy Rosenberg Research: Bank of Canada will have to cut rates harder and faster than it thinks if productivity is not addressed Published Mar 27, 2024…<\/p>\n","protected":false},"author":2,"featured_media":45330,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-45329","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy"],"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/45329","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=45329"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/45329\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/45330"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=45329"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=45329"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=45329"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
By Atakan Bakiskan<\/strong><\/p>\nIn her speech on Tuesday, Bank of Canada senior deputy governor Carolyn Rogers mentioned it is time to \u201cbreak the emergency glass\u201d regarding the structural decline in Canadian productivity.<\/p>\n<\/section>\n\nArticle content<\/p>\nReal output per hour worked (labour productivity) in Canada has declined in 12 of the past 14 quarters and is now back to where it was in the fourth quarter of 2019. What is more concerning is that the productivity slump from pre-pandemic levels is not due to a handful of industries, but is quite widespread across goods-producing sectors, with one exception in agriculture\/forestry\/fishing.<\/p>\n<\/section>\n\n\nAdvertisement 2<\/p>\n\n\n\n\nThis advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n\n\n\n<\/p>\n\nTHIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY<\/p>\nSubscribe now to read the latest news in your city and across Canada.<\/p>\n\nExclusive articles from Barbara Shecter, Joe O’Connor, Gabriel Friedman, Victoria Wells and others.<\/li>\nDaily content from Financial Times, the world’s leading global business publication.<\/li>\nUnlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.<\/li>\nNational Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.<\/li>\nDaily puzzles, including the New York Times Crossword.<\/li>\n<\/ul>\n<\/div>\n\nSUBSCRIBE TO UNLOCK MORE ARTICLES<\/p>\nSubscribe now to read the latest news in your city and across Canada.<\/p>\n\nExclusive articles from Barbara Shecter, Joe O’Connor, Gabriel Friedman, Victoria Wells and others.<\/li>\nDaily content from Financial Times, the world’s leading global business publication.<\/li>\nUnlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.<\/li>\nNational Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.<\/li>\nDaily puzzles, including the New York Times Crossword.<\/li>\n<\/ul>\n<\/div>\n\nREGISTER \/ SIGN IN TO UNLOCK MORE ARTICLES<\/p>\nCreate an account or sign in to continue with your reading experience.<\/p>\n\nAccess articles from across Canada with one account.<\/li>\nShare your thoughts and join the conversation in the comments.<\/li>\nEnjoy additional articles per month.<\/li>\nGet email updates from your favourite authors.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/header>\n\n\n\n\n\nSign In or Create an Account<\/h2>\nor<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n\nArticle content<\/p>\nFor some perspective, on a per-hour basis, an average Canadian worker produces around 70 per cent of the output of a U.S. worker (down from 88 per cent in 1984). Although labour composition (workers\u2019 skills) and a lack of competition in the market are behind Canada\u2019s poor productivity performance, the major problem remains the incredibly weak capex investment (that is, capital intensity).<\/p>\nOn a volume basis, Canada has had the same level of investment in machinery, equipment and intellectual property (which are key to productivity growth) for almost the past two decades.<\/p>\nProductivity is the key to a high-growth, low-inflation environment where living standards steadily rise. Without a productivity pick-up, the Canadian economy will not have structural and sustainable economic growth.<\/p>\nCanada\u2019s suffering from low productivity has its remedies. One that Rogers proposes is for Canada to invest in industries that generate the most output per hour worked, such as mining\/oil\/gas and utilities. Although these two industries have the highest productivity levels, the growth here is not too great, with mining down 0.7 per cent from its level in the fourth quarter of 2019 and utilities down 7.4 per cent. The only productivity gain was in services (and agriculture), which consists of the least productive industries (such as accommodation\/food services and retail trade).<\/p>\n<\/section>\n\n\nAdvertisement 3<\/p>\n\n\n\n\nThis advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n\nArticle content<\/p>\nOther remedies include increasing competition, improving workers\u2019 skills, reducing excessive regulation, redressing long-standing interprovincial trade barriers, matching efficiency in the labour market and, of course, higher business investment.<\/p>\nAn immigration policy that produces positive economic multiplier impacts would also go a long way towards turning Canada\u2019s dismal productivity record around. The country is clearly either not adequately integrating new immigrants into the workforce or is not attracting workers into value-adding industries.<\/p>\n\nRecommended from Editorial<\/p>\n<\/p>\n\n <\/picture>\nBank of Canada says country faces a productivity ’emergency’<\/span><\/p>\n<\/li>\n <\/picture>\nCaps on newcomers may damage economy, group warns<\/span><\/p>\n<\/li>\n <\/picture>\nBank of Canada policymakers at odds over when they can cut rates<\/span><\/p>\n<\/li>\n<\/ol>\n<\/section>\nA declining productivity path not only keeps the economy from non-inflationary stable growth, but also drives down the neutral rate (the equilibrium interest rate where inflation is stable and there is full employment).<\/p>\nSo, as the Canadian economy\u2019s slowdown continues, inflation keeps coming down and productivity declines, the Bank of Canada will have to cut rates harder and faster than it thinks.<\/p>\nAtakan Bakiskan is an economist at independent research firm Rosenberg Research & Associates Inc., founded by David Rosenberg. To receive more of David Rosenberg\u2019s insights and analysis, you can sign up for a complimentary, one-month trial on the Rosenberg Research website<\/span>.<\/em><\/p>\n<\/section>\n\nArticle content<\/p>\n<\/section>\n\nShare this article in your social network<\/p>\n<\/section>\n<\/div>\n\nHow to fix Canada’s poor productivity performance<\/a>\n2024-03-27 14:48:54<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Breadcrumb Trail Links News Economy Rosenberg Research: Bank of Canada will have to cut rates harder and faster than it thinks if productivity is not addressed Published Mar 27, 2024…<\/p>\n","protected":false},"author":2,"featured_media":45330,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-45329","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy"],"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/45329","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=45329"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/45329\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/45330"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=45329"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=45329"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=45329"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
In her speech on Tuesday, Bank of Canada senior deputy governor Carolyn Rogers mentioned it is time to \u201cbreak the emergency glass\u201d regarding the structural decline in Canadian productivity.<\/p>\n<\/section>\n\nArticle content<\/p>\nReal output per hour worked (labour productivity) in Canada has declined in 12 of the past 14 quarters and is now back to where it was in the fourth quarter of 2019. What is more concerning is that the productivity slump from pre-pandemic levels is not due to a handful of industries, but is quite widespread across goods-producing sectors, with one exception in agriculture\/forestry\/fishing.<\/p>\n<\/section>\n\n\nAdvertisement 2<\/p>\n\n\n\n\nThis advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n\n\n\n<\/p>\n\nTHIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY<\/p>\nSubscribe now to read the latest news in your city and across Canada.<\/p>\n\nExclusive articles from Barbara Shecter, Joe O’Connor, Gabriel Friedman, Victoria Wells and others.<\/li>\nDaily content from Financial Times, the world’s leading global business publication.<\/li>\nUnlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.<\/li>\nNational Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.<\/li>\nDaily puzzles, including the New York Times Crossword.<\/li>\n<\/ul>\n<\/div>\n\nSUBSCRIBE TO UNLOCK MORE ARTICLES<\/p>\nSubscribe now to read the latest news in your city and across Canada.<\/p>\n\nExclusive articles from Barbara Shecter, Joe O’Connor, Gabriel Friedman, Victoria Wells and others.<\/li>\nDaily content from Financial Times, the world’s leading global business publication.<\/li>\nUnlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.<\/li>\nNational Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.<\/li>\nDaily puzzles, including the New York Times Crossword.<\/li>\n<\/ul>\n<\/div>\n\nREGISTER \/ SIGN IN TO UNLOCK MORE ARTICLES<\/p>\nCreate an account or sign in to continue with your reading experience.<\/p>\n\nAccess articles from across Canada with one account.<\/li>\nShare your thoughts and join the conversation in the comments.<\/li>\nEnjoy additional articles per month.<\/li>\nGet email updates from your favourite authors.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/header>\n\n\n\n\n\nSign In or Create an Account<\/h2>\nor<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n\nArticle content<\/p>\nFor some perspective, on a per-hour basis, an average Canadian worker produces around 70 per cent of the output of a U.S. worker (down from 88 per cent in 1984). Although labour composition (workers\u2019 skills) and a lack of competition in the market are behind Canada\u2019s poor productivity performance, the major problem remains the incredibly weak capex investment (that is, capital intensity).<\/p>\nOn a volume basis, Canada has had the same level of investment in machinery, equipment and intellectual property (which are key to productivity growth) for almost the past two decades.<\/p>\nProductivity is the key to a high-growth, low-inflation environment where living standards steadily rise. Without a productivity pick-up, the Canadian economy will not have structural and sustainable economic growth.<\/p>\nCanada\u2019s suffering from low productivity has its remedies. One that Rogers proposes is for Canada to invest in industries that generate the most output per hour worked, such as mining\/oil\/gas and utilities. Although these two industries have the highest productivity levels, the growth here is not too great, with mining down 0.7 per cent from its level in the fourth quarter of 2019 and utilities down 7.4 per cent. The only productivity gain was in services (and agriculture), which consists of the least productive industries (such as accommodation\/food services and retail trade).<\/p>\n<\/section>\n\n\nAdvertisement 3<\/p>\n\n\n\n\nThis advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n\nArticle content<\/p>\nOther remedies include increasing competition, improving workers\u2019 skills, reducing excessive regulation, redressing long-standing interprovincial trade barriers, matching efficiency in the labour market and, of course, higher business investment.<\/p>\nAn immigration policy that produces positive economic multiplier impacts would also go a long way towards turning Canada\u2019s dismal productivity record around. The country is clearly either not adequately integrating new immigrants into the workforce or is not attracting workers into value-adding industries.<\/p>\n\nRecommended from Editorial<\/p>\n<\/p>\n\n <\/picture>\nBank of Canada says country faces a productivity ’emergency’<\/span><\/p>\n<\/li>\n <\/picture>\nCaps on newcomers may damage economy, group warns<\/span><\/p>\n<\/li>\n <\/picture>\nBank of Canada policymakers at odds over when they can cut rates<\/span><\/p>\n<\/li>\n<\/ol>\n<\/section>\nA declining productivity path not only keeps the economy from non-inflationary stable growth, but also drives down the neutral rate (the equilibrium interest rate where inflation is stable and there is full employment).<\/p>\nSo, as the Canadian economy\u2019s slowdown continues, inflation keeps coming down and productivity declines, the Bank of Canada will have to cut rates harder and faster than it thinks.<\/p>\nAtakan Bakiskan is an economist at independent research firm Rosenberg Research & Associates Inc., founded by David Rosenberg. To receive more of David Rosenberg\u2019s insights and analysis, you can sign up for a complimentary, one-month trial on the Rosenberg Research website<\/span>.<\/em><\/p>\n<\/section>\n\nArticle content<\/p>\n<\/section>\n\nShare this article in your social network<\/p>\n<\/section>\n<\/div>\n\nHow to fix Canada’s poor productivity performance<\/a>\n2024-03-27 14:48:54<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Breadcrumb Trail Links News Economy Rosenberg Research: Bank of Canada will have to cut rates harder and faster than it thinks if productivity is not addressed Published Mar 27, 2024…<\/p>\n","protected":false},"author":2,"featured_media":45330,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-45329","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy"],"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/45329","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=45329"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/45329\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/45330"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=45329"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=45329"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=45329"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Article content<\/p>\n
Real output per hour worked (labour productivity) in Canada has declined in 12 of the past 14 quarters and is now back to where it was in the fourth quarter of 2019. What is more concerning is that the productivity slump from pre-pandemic levels is not due to a handful of industries, but is quite widespread across goods-producing sectors, with one exception in agriculture\/forestry\/fishing.<\/p>\n<\/section>\n
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or<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n\nArticle content<\/p>\nFor some perspective, on a per-hour basis, an average Canadian worker produces around 70 per cent of the output of a U.S. worker (down from 88 per cent in 1984). Although labour composition (workers\u2019 skills) and a lack of competition in the market are behind Canada\u2019s poor productivity performance, the major problem remains the incredibly weak capex investment (that is, capital intensity).<\/p>\nOn a volume basis, Canada has had the same level of investment in machinery, equipment and intellectual property (which are key to productivity growth) for almost the past two decades.<\/p>\nProductivity is the key to a high-growth, low-inflation environment where living standards steadily rise. Without a productivity pick-up, the Canadian economy will not have structural and sustainable economic growth.<\/p>\nCanada\u2019s suffering from low productivity has its remedies. One that Rogers proposes is for Canada to invest in industries that generate the most output per hour worked, such as mining\/oil\/gas and utilities. Although these two industries have the highest productivity levels, the growth here is not too great, with mining down 0.7 per cent from its level in the fourth quarter of 2019 and utilities down 7.4 per cent. The only productivity gain was in services (and agriculture), which consists of the least productive industries (such as accommodation\/food services and retail trade).<\/p>\n<\/section>\n\n\nAdvertisement 3<\/p>\n\n\n\n\nThis advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n\nArticle content<\/p>\nOther remedies include increasing competition, improving workers\u2019 skills, reducing excessive regulation, redressing long-standing interprovincial trade barriers, matching efficiency in the labour market and, of course, higher business investment.<\/p>\nAn immigration policy that produces positive economic multiplier impacts would also go a long way towards turning Canada\u2019s dismal productivity record around. The country is clearly either not adequately integrating new immigrants into the workforce or is not attracting workers into value-adding industries.<\/p>\n\nRecommended from Editorial<\/p>\n<\/p>\n\n <\/picture>\nBank of Canada says country faces a productivity ’emergency’<\/span><\/p>\n<\/li>\n <\/picture>\nCaps on newcomers may damage economy, group warns<\/span><\/p>\n<\/li>\n <\/picture>\nBank of Canada policymakers at odds over when they can cut rates<\/span><\/p>\n<\/li>\n<\/ol>\n<\/section>\nA declining productivity path not only keeps the economy from non-inflationary stable growth, but also drives down the neutral rate (the equilibrium interest rate where inflation is stable and there is full employment).<\/p>\nSo, as the Canadian economy\u2019s slowdown continues, inflation keeps coming down and productivity declines, the Bank of Canada will have to cut rates harder and faster than it thinks.<\/p>\nAtakan Bakiskan is an economist at independent research firm Rosenberg Research & Associates Inc., founded by David Rosenberg. To receive more of David Rosenberg\u2019s insights and analysis, you can sign up for a complimentary, one-month trial on the Rosenberg Research website<\/span>.<\/em><\/p>\n<\/section>\n\nArticle content<\/p>\n<\/section>\n\nShare this article in your social network<\/p>\n<\/section>\n<\/div>\n\nHow to fix Canada’s poor productivity performance<\/a>\n2024-03-27 14:48:54<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Breadcrumb Trail Links News Economy Rosenberg Research: Bank of Canada will have to cut rates harder and faster than it thinks if productivity is not addressed Published Mar 27, 2024…<\/p>\n","protected":false},"author":2,"featured_media":45330,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-45329","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy"],"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/45329","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=45329"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/45329\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/45330"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=45329"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=45329"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=45329"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
For some perspective, on a per-hour basis, an average Canadian worker produces around 70 per cent of the output of a U.S. worker (down from 88 per cent in 1984). Although labour composition (workers\u2019 skills) and a lack of competition in the market are behind Canada\u2019s poor productivity performance, the major problem remains the incredibly weak capex investment (that is, capital intensity).<\/p>\n
On a volume basis, Canada has had the same level of investment in machinery, equipment and intellectual property (which are key to productivity growth) for almost the past two decades.<\/p>\n
Productivity is the key to a high-growth, low-inflation environment where living standards steadily rise. Without a productivity pick-up, the Canadian economy will not have structural and sustainable economic growth.<\/p>\n
Canada\u2019s suffering from low productivity has its remedies. One that Rogers proposes is for Canada to invest in industries that generate the most output per hour worked, such as mining\/oil\/gas and utilities. Although these two industries have the highest productivity levels, the growth here is not too great, with mining down 0.7 per cent from its level in the fourth quarter of 2019 and utilities down 7.4 per cent. The only productivity gain was in services (and agriculture), which consists of the least productive industries (such as accommodation\/food services and retail trade).<\/p>\n<\/section>\n
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This advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n\nArticle content<\/p>\nOther remedies include increasing competition, improving workers\u2019 skills, reducing excessive regulation, redressing long-standing interprovincial trade barriers, matching efficiency in the labour market and, of course, higher business investment.<\/p>\nAn immigration policy that produces positive economic multiplier impacts would also go a long way towards turning Canada\u2019s dismal productivity record around. The country is clearly either not adequately integrating new immigrants into the workforce or is not attracting workers into value-adding industries.<\/p>\n\nRecommended from Editorial<\/p>\n<\/p>\n\n <\/picture>\nBank of Canada says country faces a productivity ’emergency’<\/span><\/p>\n<\/li>\n <\/picture>\nCaps on newcomers may damage economy, group warns<\/span><\/p>\n<\/li>\n <\/picture>\nBank of Canada policymakers at odds over when they can cut rates<\/span><\/p>\n<\/li>\n<\/ol>\n<\/section>\nA declining productivity path not only keeps the economy from non-inflationary stable growth, but also drives down the neutral rate (the equilibrium interest rate where inflation is stable and there is full employment).<\/p>\nSo, as the Canadian economy\u2019s slowdown continues, inflation keeps coming down and productivity declines, the Bank of Canada will have to cut rates harder and faster than it thinks.<\/p>\nAtakan Bakiskan is an economist at independent research firm Rosenberg Research & Associates Inc., founded by David Rosenberg. To receive more of David Rosenberg\u2019s insights and analysis, you can sign up for a complimentary, one-month trial on the Rosenberg Research website<\/span>.<\/em><\/p>\n<\/section>\n\nArticle content<\/p>\n<\/section>\n\nShare this article in your social network<\/p>\n<\/section>\n<\/div>\n\nHow to fix Canada’s poor productivity performance<\/a>\n2024-03-27 14:48:54<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Breadcrumb Trail Links News Economy Rosenberg Research: Bank of Canada will have to cut rates harder and faster than it thinks if productivity is not addressed Published Mar 27, 2024…<\/p>\n","protected":false},"author":2,"featured_media":45330,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-45329","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy"],"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/45329","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=45329"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/45329\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/45330"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=45329"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=45329"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=45329"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Other remedies include increasing competition, improving workers\u2019 skills, reducing excessive regulation, redressing long-standing interprovincial trade barriers, matching efficiency in the labour market and, of course, higher business investment.<\/p>\n
An immigration policy that produces positive economic multiplier impacts would also go a long way towards turning Canada\u2019s dismal productivity record around. The country is clearly either not adequately integrating new immigrants into the workforce or is not attracting workers into value-adding industries.<\/p>\n\nRecommended from Editorial<\/p>\n<\/p>\n\n <\/picture>\nBank of Canada says country faces a productivity ’emergency’<\/span><\/p>\n<\/li>\n <\/picture>\nCaps on newcomers may damage economy, group warns<\/span><\/p>\n<\/li>\n <\/picture>\nBank of Canada policymakers at odds over when they can cut rates<\/span><\/p>\n<\/li>\n<\/ol>\n<\/section>\nA declining productivity path not only keeps the economy from non-inflationary stable growth, but also drives down the neutral rate (the equilibrium interest rate where inflation is stable and there is full employment).<\/p>\nSo, as the Canadian economy\u2019s slowdown continues, inflation keeps coming down and productivity declines, the Bank of Canada will have to cut rates harder and faster than it thinks.<\/p>\nAtakan Bakiskan is an economist at independent research firm Rosenberg Research & Associates Inc., founded by David Rosenberg. To receive more of David Rosenberg\u2019s insights and analysis, you can sign up for a complimentary, one-month trial on the Rosenberg Research website<\/span>.<\/em><\/p>\n<\/section>\n\nArticle content<\/p>\n<\/section>\n\nShare this article in your social network<\/p>\n<\/section>\n<\/div>\n\nHow to fix Canada’s poor productivity performance<\/a>\n2024-03-27 14:48:54<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Breadcrumb Trail Links News Economy Rosenberg Research: Bank of Canada will have to cut rates harder and faster than it thinks if productivity is not addressed Published Mar 27, 2024…<\/p>\n","protected":false},"author":2,"featured_media":45330,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-45329","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy"],"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/45329","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=45329"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/45329\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/45330"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=45329"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=45329"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=45329"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Recommended from Editorial<\/p>\n
<\/p>\n\n <\/picture>\nBank of Canada says country faces a productivity ’emergency’<\/span><\/p>\n<\/li>\n <\/picture>\nCaps on newcomers may damage economy, group warns<\/span><\/p>\n<\/li>\n <\/picture>\nBank of Canada policymakers at odds over when they can cut rates<\/span><\/p>\n<\/li>\n<\/ol>\n<\/section>\nA declining productivity path not only keeps the economy from non-inflationary stable growth, but also drives down the neutral rate (the equilibrium interest rate where inflation is stable and there is full employment).<\/p>\nSo, as the Canadian economy\u2019s slowdown continues, inflation keeps coming down and productivity declines, the Bank of Canada will have to cut rates harder and faster than it thinks.<\/p>\nAtakan Bakiskan is an economist at independent research firm Rosenberg Research & Associates Inc., founded by David Rosenberg. To receive more of David Rosenberg\u2019s insights and analysis, you can sign up for a complimentary, one-month trial on the Rosenberg Research website<\/span>.<\/em><\/p>\n<\/section>\n\nArticle content<\/p>\n<\/section>\n\nShare this article in your social network<\/p>\n<\/section>\n<\/div>\n\nHow to fix Canada’s poor productivity performance<\/a>\n2024-03-27 14:48:54<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Breadcrumb Trail Links News Economy Rosenberg Research: Bank of Canada will have to cut rates harder and faster than it thinks if productivity is not addressed Published Mar 27, 2024…<\/p>\n","protected":false},"author":2,"featured_media":45330,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-45329","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy"],"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/45329","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=45329"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/45329\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/45330"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=45329"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=45329"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=45329"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Bank of Canada says country faces a productivity ’emergency’<\/span><\/p>\n<\/li>\n <\/picture>\nCaps on newcomers may damage economy, group warns<\/span><\/p>\n<\/li>\n <\/picture>\nBank of Canada policymakers at odds over when they can cut rates<\/span><\/p>\n<\/li>\n<\/ol>\n<\/section>\nA declining productivity path not only keeps the economy from non-inflationary stable growth, but also drives down the neutral rate (the equilibrium interest rate where inflation is stable and there is full employment).<\/p>\nSo, as the Canadian economy\u2019s slowdown continues, inflation keeps coming down and productivity declines, the Bank of Canada will have to cut rates harder and faster than it thinks.<\/p>\nAtakan Bakiskan is an economist at independent research firm Rosenberg Research & Associates Inc., founded by David Rosenberg. To receive more of David Rosenberg\u2019s insights and analysis, you can sign up for a complimentary, one-month trial on the Rosenberg Research website<\/span>.<\/em><\/p>\n<\/section>\n\nArticle content<\/p>\n<\/section>\n\nShare this article in your social network<\/p>\n<\/section>\n<\/div>\n\nHow to fix Canada’s poor productivity performance<\/a>\n2024-03-27 14:48:54<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Breadcrumb Trail Links News Economy Rosenberg Research: Bank of Canada will have to cut rates harder and faster than it thinks if productivity is not addressed Published Mar 27, 2024…<\/p>\n","protected":false},"author":2,"featured_media":45330,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-45329","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy"],"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/45329","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=45329"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/45329\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/45330"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=45329"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=45329"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=45329"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Caps on newcomers may damage economy, group warns<\/span><\/p>\n<\/li>\n <\/picture>\nBank of Canada policymakers at odds over when they can cut rates<\/span><\/p>\n<\/li>\n<\/ol>\n<\/section>\nA declining productivity path not only keeps the economy from non-inflationary stable growth, but also drives down the neutral rate (the equilibrium interest rate where inflation is stable and there is full employment).<\/p>\nSo, as the Canadian economy\u2019s slowdown continues, inflation keeps coming down and productivity declines, the Bank of Canada will have to cut rates harder and faster than it thinks.<\/p>\nAtakan Bakiskan is an economist at independent research firm Rosenberg Research & Associates Inc., founded by David Rosenberg. To receive more of David Rosenberg\u2019s insights and analysis, you can sign up for a complimentary, one-month trial on the Rosenberg Research website<\/span>.<\/em><\/p>\n<\/section>\n\nArticle content<\/p>\n<\/section>\n\nShare this article in your social network<\/p>\n<\/section>\n<\/div>\n\nHow to fix Canada’s poor productivity performance<\/a>\n2024-03-27 14:48:54<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Breadcrumb Trail Links News Economy Rosenberg Research: Bank of Canada will have to cut rates harder and faster than it thinks if productivity is not addressed Published Mar 27, 2024…<\/p>\n","protected":false},"author":2,"featured_media":45330,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-45329","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy"],"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/45329","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=45329"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/45329\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/45330"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=45329"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=45329"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=45329"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Bank of Canada policymakers at odds over when they can cut rates<\/span><\/p>\n<\/li>\n<\/ol>\n<\/section>\nA declining productivity path not only keeps the economy from non-inflationary stable growth, but also drives down the neutral rate (the equilibrium interest rate where inflation is stable and there is full employment).<\/p>\nSo, as the Canadian economy\u2019s slowdown continues, inflation keeps coming down and productivity declines, the Bank of Canada will have to cut rates harder and faster than it thinks.<\/p>\nAtakan Bakiskan is an economist at independent research firm Rosenberg Research & Associates Inc., founded by David Rosenberg. To receive more of David Rosenberg\u2019s insights and analysis, you can sign up for a complimentary, one-month trial on the Rosenberg Research website<\/span>.<\/em><\/p>\n<\/section>\n\nArticle content<\/p>\n<\/section>\n\nShare this article in your social network<\/p>\n<\/section>\n<\/div>\n\nHow to fix Canada’s poor productivity performance<\/a>\n2024-03-27 14:48:54<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Breadcrumb Trail Links News Economy Rosenberg Research: Bank of Canada will have to cut rates harder and faster than it thinks if productivity is not addressed Published Mar 27, 2024…<\/p>\n","protected":false},"author":2,"featured_media":45330,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-45329","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy"],"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/45329","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=45329"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/45329\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/45330"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=45329"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=45329"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=45329"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
<\/section>\nA declining productivity path not only keeps the economy from non-inflationary stable growth, but also drives down the neutral rate (the equilibrium interest rate where inflation is stable and there is full employment).<\/p>\nSo, as the Canadian economy\u2019s slowdown continues, inflation keeps coming down and productivity declines, the Bank of Canada will have to cut rates harder and faster than it thinks.<\/p>\nAtakan Bakiskan is an economist at independent research firm Rosenberg Research & Associates Inc., founded by David Rosenberg. To receive more of David Rosenberg\u2019s insights and analysis, you can sign up for a complimentary, one-month trial on the Rosenberg Research website<\/span>.<\/em><\/p>\n<\/section>\n\nArticle content<\/p>\n<\/section>\n\nShare this article in your social network<\/p>\n<\/section>\n<\/div>\n\nHow to fix Canada’s poor productivity performance<\/a>\n2024-03-27 14:48:54<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Breadcrumb Trail Links News Economy Rosenberg Research: Bank of Canada will have to cut rates harder and faster than it thinks if productivity is not addressed Published Mar 27, 2024…<\/p>\n","protected":false},"author":2,"featured_media":45330,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-45329","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy"],"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/45329","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=45329"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/45329\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/45330"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=45329"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=45329"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=45329"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
A declining productivity path not only keeps the economy from non-inflationary stable growth, but also drives down the neutral rate (the equilibrium interest rate where inflation is stable and there is full employment).<\/p>\n
So, as the Canadian economy\u2019s slowdown continues, inflation keeps coming down and productivity declines, the Bank of Canada will have to cut rates harder and faster than it thinks.<\/p>\n
Atakan Bakiskan is an economist at independent research firm Rosenberg Research & Associates Inc., founded by David Rosenberg. To receive more of David Rosenberg\u2019s insights and analysis, you can sign up for a complimentary, one-month trial on the Rosenberg Research website<\/span>.<\/em><\/p>\n<\/section>\n\nArticle content<\/p>\n<\/section>\n\nShare this article in your social network<\/p>\n<\/section>\n<\/div>\n\nHow to fix Canada’s poor productivity performance<\/a>\n2024-03-27 14:48:54<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Breadcrumb Trail Links News Economy Rosenberg Research: Bank of Canada will have to cut rates harder and faster than it thinks if productivity is not addressed Published Mar 27, 2024…<\/p>\n","protected":false},"author":2,"featured_media":45330,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-45329","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy"],"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/45329","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=45329"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/45329\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/45330"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=45329"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=45329"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=45329"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Article content<\/p>\n<\/section>\n\nShare this article in your social network<\/p>\n<\/section>\n<\/div>\n\nHow to fix Canada’s poor productivity performance<\/a>\n2024-03-27 14:48:54<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Breadcrumb Trail Links News Economy Rosenberg Research: Bank of Canada will have to cut rates harder and faster than it thinks if productivity is not addressed Published Mar 27, 2024…<\/p>\n","protected":false},"author":2,"featured_media":45330,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-45329","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy"],"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/45329","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=45329"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/45329\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/45330"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=45329"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=45329"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=45329"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Share this article in your social network<\/p>\n<\/section>\n<\/div>\n\nHow to fix Canada’s poor productivity performance<\/a>\n2024-03-27 14:48:54<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"
Breadcrumb Trail Links News Economy Rosenberg Research: Bank of Canada will have to cut rates harder and faster than it thinks if productivity is not addressed Published Mar 27, 2024…<\/p>\n","protected":false},"author":2,"featured_media":45330,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-45329","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy"],"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/45329","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=45329"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/45329\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/45330"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=45329"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=45329"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=45329"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}