By Michael Lee
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September 3, 2022 (CTV Network) — Labor productivity rose in the second quarter of 2022 for the first time in two years, as pandemic restrictions eased across much of the country, according to a recent report from Statistics Canada. According to StatCan, released on Friday, the 0.2 percent rise in labor productivity is the first after seven consecutive quarters of decline, beginning with the introduction of the first lockdown measures in response to the COVID-19 pandemic. Real gross domestic product rose 0.9 percent in the second quarter between April and June, similar to the first quarter of 2022. StatCan defines labor productivity as real GDP per hour worked. “With the lifting of public health measures in almost all regions of the country in the second quarter, companies were able to carry out their economic activities without pandemic-related restrictions such as public capacity limits and mask requirements,” the report said. Of the main industries that saw growth in the second quarter, the report found notable productivity gains in arts, entertainment and recreation (20 percent), lodging and hospitality services (14.3 percent), and transportation and warehousing (5.3 percent). hard cents) — all sectors heavily impacted by public health measures, StatCan said. Hours worked rose 0.7 percent for the fourth consecutive quarter, although that increase was smaller than the previous three quarters. The number of people who have more than one job also rose 1.3 percent for the eighth consecutive quarter, while the number of unpaid absences fell 7.7 percent, after rising 11.1 percent in the first quarter of 2022 was, according to the report. Unit labor costs, or the cost of wages and benefits of workers per unit of real GDP, as defined by StatCan, rose 2 percent in the second quarter, compared with 2.8 percent in the first quarter of 2022, the report said. According to StatCan, this slower pace of growth is due to increasing productivity. Meanwhile, average hourly compensation also rose 2.2 percent, after a similar 2.1 percent increase in the first quarter of 2022. The report comes as Canada grapples with high but slowing inflation and major banks next week predict another rate hike. Buoyed by a decline in self-employment, Canada’s economy also posted its first monthly job losses of the year in June, with 43,000 jobs lost. The country’s unemployment rate fell to 4.9 percent this month – the lowest since 1976 – as fewer people looked for work. Job vacancies rose 3.2 percent between May and June to a new high of 1,037,900 jobs, representing a job vacancy rate of 5.9 percent – for the third straight month the number of vacancies remained above one million. The latest July jobs numbers also marked a second straight month of job losses, with the Canadian economy shedding 31,000 jobs and the unemployment rate held steady at 4.9 percent. Wage growth rose 5.2 percent year-on-year in July, the same as in June. With files from The Canadian Press
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