Almost 86 per cent of respondents to The Logic’s latest survey believe there is a productivity crisis in Canada, but they are almost evenly split on whether the country can fix it.

Canada has been in a productivity slump for years. In one key measure, economic output per hour worked, the country has suffered a decades-long decline compared to most other G7 countries.

There are plenty of theories as to why Canada is stuck in a productivity slump, including lack of skilled labour and low levels of investment in productivity-boosting measures like training and innovation, as well as machinery and equipment.

Almost three-quarters of respondents say their organization has implemented new technologies or processes in the last two years aimed at increasing productivity, but 56 per cent say outdated technology or clunky systems are still hindering their ability to work. Subscribers mentioned “old and dusty” legacy systems that are kept alive because they would “cost a fortune to modernize.”

“It’s hard to rip-and-replace the most critical systems, so they tend to persist,” one subscriber said. 

Several respondents mentioned technical debt—the extra catch-up work owed when a company prioritizes easy short-term solutions over long-term ones—is growing at their organizations. Readers also pointed to a risk-averse business culture, and slow or hesitant adoption of AI and other tech in their workplace as barriers to their sector’s productivity. Some pointed to a lack of capital, others said communications systems and messy knowledge transfer in their organization were the real culprit.  

“AI has certainly enabled me to be extremely efficient in performing parts of my role,” one subscriber said, “but sometimes, even though I’m taking multiple trainings and courses, I feel like I’m not as efficient as I could be. I feel like I’m always in catch-up mode.”

Labour productivity, a key indicator of productivity, had been in decline in Canada for three years, only bucking the trend in 2024 with a slight increase in the fourth quarter. But economists theorize such gains are due to Canadians working longer, not smarter, compared to countries in Europe that work less but produce more for each hour. 

Some subscribers said a lack of access to capital was another hindrance, but business leaders may also face challenges when it comes to spending amidst a trade war. Several subscribers also mentioned red tape, over-regulation and regulatory roadblocks as barriers to productivity in their sector.  

“The antiquated systems involved in my government interaction and costs associated with compliance to government regulations and tax laws are killing our business,” one respondent said. 

Readers are almost exactly split into thirds when it comes to optimism that Canada can make concrete progress to fix its productivity problems in the next five years. Some expressed doubt about provincial collaboration, but said they had hope that plans put forward by the new federal government could make a difference.

“The cause of the problem is unclear,” one subscriber said, “but there is energy to find a solution.”

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Methodology

The Logic emailed subscribers a private link to an online survey on May 21, with a closing date of May 23. Respondents’ identities were kept anonymous. Subscribers were first asked, “Do you believe Canada is currently facing a productivity crisis?” and could answer “Yes,” “No,” or “Unsure.”

They were then asked, “Has your company or organization implemented new technologies or processes in the last two years specifically aimed at increasing productivity?” and “Do you feel that outdated technology or clunky systems hinder your ability to be productive at work?”  In both cases, respondents could answer “Yes,” “No,” or “Unsure.” 

Respondents were then asked, “Are you optimistic that Canada will make concrete progress to fix its productivity problems in the next five years?” and could answer “Yes,” “No,” or “Unsure.” Finally, they were asked the open-ended question: “What is the biggest barrier to productivity in your sector?