FX.co ★ Canada’s Labor Productivity Slips in Q4, Ending Previous Quarter’s Gains

Canada’s labor productivity declined in the fourth quarter of 2025, reversing the improvement seen earlier in the year, according to data updated on 4 March 2026. Output per worker fell by 0.1% quarter-over-quarter, compared with a 1.1% increase in the third quarter of 2025.

The figures highlight a clear loss of momentum. While the third quarter had marked a solid rebound in productivity relative to the previous quarter, the latest reading shows that those gains failed to carry through to the end of the year. The quarter-over-quarter comparison underscores a shift from strong positive growth in Q3 to a marginal contraction in Q4.

With the “actual” figure for the fourth quarter measured against the third quarter, and the “previous” quarter’s 1.1% rise measured relative to the second quarter, the data suggest that Canada’s productivity trend has weakened as 2025 drew to a close. Policymakers and businesses are likely to monitor upcoming releases closely for signs of whether this downturn is temporary or the start of a more persistent slowdown in efficiency.