Canadian labor productivity slipped slightly in the final quarter of 2025 as economic activity pulled back, according to new data. The modest decline marks a continuation of the productivity fluctuations that have characterized the Canadian economy in recent months.

This latest reading suggests businesses faced headwinds as the year ended, with output per worker falling despite ongoing economic challenges. The productivity dip comes amid broader concerns about Canadian economic growth and business performance heading into 2026.

The productivity decline reflects the complex economic environment Canadian businesses navigated through late 2025. While the drop was modest, it signals potential challenges for business efficiency and economic momentum as companies adjust to changing market conditions.