Canada’s business productivity improved in the third quarter as hourly wages grew, according to the latest data, which also showed a drop in hours worked amid the trade war.

Statistics Canada reported Wednesday that labour productivity increased 0.9 per cent from July through September 2025 compared to the second quarter, when it declined one per cent.

The agency defines labour productivity as a measure of how much each hour worked contributes to Canada’s economic output, or Gross Domestic Product.

GDP grew by 0.6 per cent in the third quarter after falling 0.5 per cent in the second quarter, which means the economy managed to avoid a technical recession, as defined by two straight quarters where GDP drops.

Economist Nathan Janzen at Royal Bank of Canada had noted when the latest

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