Labour productivity of Canadian businesses fell 0.3% in the second quarter, after increasing 0.4% in the first quarter. The decline occurred against a backdrop of temporary difficulties resulting from the wildfire in northern Alberta, which affected both output and labour.

The productivity decline in the second quarter reflected the fact that the decrease in business output was more pronounced than the decline in hours worked.

The productivity decline in the second quarter was attributable to goods-producing businesses (-0.9%). Labour productivity decreased in mining, quarrying, and oil and gas extraction (-0.6%) and manufacturing (-0.1%). On the other hand, productivity rose in utilities (+1.2%) and agriculture and forestry (+0.9%). Construction was virtually unchanged (+0.1%).