Modest increase in growth but no change in hours worked: Statscan
(Reuters) - Labour productivity in Canada unexpectedly increased by 0.1 per cent in the third quarter of 2010, reflecting a modest increase in growth with no change in the number of hours worked, according to Statistics Canada.
Markets had expected a 0.1 per cent decline in productivity, which is a measure of economic output per hour of labour. Statscan revised second quarter productivity to a drop of 0.6 per cent from an initial 0.8 per cent fall.
Real gross domestic product growth in businesses grew by 0.1 per cent as increased output of goods-producing industries outweighed weakness in service industries. The volume of hours worked was unchanged after two consecutive 1.2 per cent gains.
Employment was up 0.5 per cent while hours worked per job fell by 0.6 per cent. Labour costs per unit of production increased 0.6 per cent from the second quarter as productivity grew slower than hourly compensation increased.
After five quarters of appreciation, the average value of the Canadian dollar relative to its United States counterpart fell by 1.1 per cent in the third quarter. This mean Canadian unit labour costs measured in U.S. dollars dropped 0.5 per cent, the first such decline since the first quarter of 2009.
