However, Canada has seen slower productivity growth since 2015, primarily due to a reduction in capital investment following the downturn in commodity prices starting in 2014. Â
Between 1980 and 2015, rising capital intensity contributed 0.9 percentage points annually to labor productivity growth. From 2015 to 2022, its contribution halved to about 0.4 percentage points.  Â
During the periods from 1980 to 2000 and from 2015 to 2022, labor productivity growth rates were 1.8 percent and 0.8 percent per year, respectively, marking a 1 percentage point reduction in growth.  Â
The most significant factor in the slowdown of labor productivity growth post-2015 was the weaker investment in fixed capital. Approximately half of the decline in labor productivity growth can be attributed to the drop in capital intensity. Â
Additionally, the reductions in multifactor productivity and skill upgrading after 2015 accounted for a 0.4 percentage point and a 0.1 percentage point decline in labor productivity growth, respectively.Â
