Montreal has a better quality of life, but worse productivity than comparable cities

While Montreal stands out for its quality of life and its environment, the Quebec metropolis has the worst productivity and the lowest standard of living per capita of North American cities of comparable size, according to a study by the Institut du Québec ( IDQ), published Thursday.

“In terms of economic growth, Greater Montreal has experienced momentum since 2016, which seems to be running out of steam,” explains Emna Braham, co-author of the study and general director of the IDQ. “Result: in terms of economic activity, Montreal has moved up a place, but remains at the back of the pack. »

The Institute presents its “dashboard” of 15 Canadian and American metropolises of similar size and economic structure for the fifth time since 2015. The comparison is made on the basis of 29 indicators relating to the economy, human capital, innovation, quality of life and the environment. The study is being conducted in collaboration with Montréal International and the Chamber of Commerce of Metropolitan Montreal. It aims to measure their progress and setbacks and also allows them to draw inspiration from successes elsewhere.

The importance of the metropolis in the Quebec economy is undeniable. Economic growth in the Montreal region has exceeded that of the rest of Quebec every year in the last decade, the report reveals. The GDP per capita of the metropolis was 24% higher than that of the rest of the province in 2022. Montreal therefore “pushes up the average of the entire province and this contributes to catching up with the standard of living targeted by the government of Quebec”, according to Mme 1Braham, who speaks of the metropolis as a “locomotive” of the Quebec economy.

Deficient human capital

Although it performs well in Quebec, Montreal has the lowest GDP per capita of the cities studied. San Francisco, with a GDP per person more than three times higher than that of Montreal, wins the prize for economic performance. Montreal is also at the bottom of the pack when it comes to disposable income per capita, even taking into account government transfers.

The metropolis’s low productivity explains its disappointing economic performance, according to the IDQ. The value of goods and services produced per worker is lower in Montreal than in the 14 other cities under scrutiny. However, “productivity is the main lever which makes it possible to increase the standard of living and it is at half mast”, explains Mme Braham.

Montreal’s main weakness therefore lies in what the IDQ calls “human capital”. A small proportion of the population has a university degree and the graduation rate is increasing less quickly than elsewhere. “It’s a bit like the chain of causality: we have a population that is less qualified, so we are less productive and the standard of living per capita is increasing less quickly than we would like,” explains the director of the Institute. .

A place where life is good

Montreal, however, stands out for its quality of life and sits at the top of the rankings in this category, notably due to a lower level of inequality and a lower poverty rate, and thanks to greater life expectancy and more affordable housing. “It is an undeniable asset for attracting talent and investments, according to Mme Braham, and the city has every interest in promoting it. »

We have a population that is less qualified, therefore we are less productive

Although its performance has improved since the previous ranking, in 2019, Montrealers still lose 72 hours in road congestion per year and per driver, which earns it 10e rank. However, some will console themselves by comparing themselves to Boston (134 hours) and Toronto (118 hours).

For the first time, this year, the IDQ added an “environment” category to its study. Montreal scores well, particularly because of its air quality, its wooded cover and its public transportation system. Moreover, Montreal is the second city, the first being Vancouver, in terms of the use of public transportation and active transportation.

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