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Addressing Canada's High Cost of Living: The Role of Productivity and Bargaining Power

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  • Claude Lavoie

Abstract

This commentary examines persistent concerns about the cost of living among Canadians, a phenomenon also observed across many developed economies. Despite macroeconomic indicators showing that household income has generally grown faster than prices in recent years, approximately 60 per cent of Canadians identify the cost of living as a primary concern. Drawing on polling data, economic statistics, and policy literature, the analysis identifies housing affordability, slowing real income growth, and social media–driven financial perceptions as key drivers. The commentary concludes that policy responses should prioritize housing supply, productivity growth, and stronger worker bargaining power to ensure that economic gains translate into improved household welfare.

Suggested Citation

  • Claude Lavoie, 2026. "Addressing Canada's High Cost of Living: The Role of Productivity and Bargaining Power," International Productivity Monitor, Centre for the Study of Living Standards, vol. 50, pages 129-142, Spring.
    • Handle: RePEc:sls:ipmsls:v:50:y:2026:6
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    References listed on IDEAS

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    1. Luis Rayo & Gary S. Becker, 2007. "Habits, Peers, and Happiness: An Evolutionary Perspective," American Economic Review, American Economic Association, vol. 97(2), pages 487-491, May.
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