Productivity Gap: Canada and the United States

Canada and the United States: This productivity gap between Canada and the United States has plagued policy-makers, academics and business leaders for decades, according to The Chronicle Herald. The Statistics Canada study found that small firms tend to be less productive than large ones. With a higher share of small firms, Canada is, therefore, less productive than the U.S and The problem, pared down to its simplest terms, is this: An hour of work in Canada generates less economic output than an hour of work south of the border. But a new study has found that Canadas lower labour productivity, as measured by gross domestic product per hour work, is due to a larger share of jobs in small Canadian firms. (www.immigrantscanada.com). As reported in the news.