Q. “How do you calculate the productivity rate and what are the aspects that influence this rate? We often hear it said that the productivity rate is low in Quebec and I would like to know why. ”
Guillaume Deschênes
R. In the mid-2000s, the former Prime Minister Lucien Bouchard had raised many waves by denouncing the lack of productivity of Quebecers. What ? Are we lazy? the workers pointed out.
That is not the question!
Productivity does not measure the amount of effort that workers put in, but rather the efficiency of those workers in turning their efforts into production.
To answer your question specifically, Mr. Deschênes, we measure productivity by dividing all the wealth generated by an economy – we are talking here about the gross domestic product (GDP) which reflects the value of all the products and services produced in a year – by the number of hours worked.
Using this formula, we arrive at $ 64.67 in Quebec. However, productivity is 6% higher in Ontario ($ 68.73) and 12% in British Columbia ($ 72.71), as can be seen in the 2020 Report on Productivity and Prosperity in Quebec. , from HEC Montreal.1.
Unfortunately, the gap is even greater with the OECD countries which are, on average, 30% more productive than Quebec, while the top of the class like Germany, Sweden and France are around 40% more productive than us.
For every hour worked in these countries, the labor force frees an additional $ 25.
What explains this gap? European countries have put in place rules to make their markets more competitive, especially in public services, while here, monopolies (e.g. SAQ) and oligopolies (e.g. banks, telecommunications, transport) have more the top of the pavement.
But other factors work against us.
First, the poor organization of work. Think of the health system where caregivers spend too much time filling out paperwork rather than treating sick people.
Then, investments in technology. Quebec has fewer large companies than Ontario. By their size, they are the ones that can whip up productivity by investing in robotics and automation.
Then, innovation and entrepreneurship. However, Quebec is a dunce in the creation of businesses on a Canadian and global scale.
And finally, education, which is the most important long-term determinant of productivity. Tackling dropping out of school – particularly acute among boys in Quebec – is therefore an imperative.
More knowledge, more creativity, more innovation… we need it!
Productivity is the main lever for increasing wealth in Quebec, in a context where the increase in the labor pool is limited due to demographics.
Because of the shortage of workers, we are doomed to do better work.
In its fall economic update, Quebec also released 350 million over five years to increase funding for business projects and support the establishment of innovation zones.
We do not have a choice. If we want to improve our standard of living in Quebec, productivity is the key.