Lessons for Canada from International Productivity Experience

The objective of this report is to develop a more comprehensive understanding, from a policy perspective, of key drivers of labour productivity in selected OECD countries and their impact on enhanced productivity performance. It is hoped that the project will inform and strengthen future policy development in the productivity area, particularly as to related to ensuring appropriate and effective investments to support the skills development of Canadians. The report is divided into three major parts. The first part will provide a general review of international labour productivity and income growth rates and levels in OECD countries. The second section presents some general lessons from the productivity performance of OECD countries and international evidence of productivity drivers based on the OECD growth project and productivity studies by the McKinsey Global Institute. The third part discusses the productivity experience of six OECD countries considered of particular interest to Canada – the United States, Australia, Ireland, the United Kingdom, Finland, and Sweden – and comments on possible lessons for Canada from these experiences.