Labour Productivity
Real Estate and Rental and Leasing
(NAICS 53)
Indices on labour productivity for the
Real Estate and Rental and Leasing (NAICS 53) sector are unavailable.
On the other hand, Statistics Canada publishes an index for the
combination of the Finance and Insurance (NAICS 52),
Real Estate and Rental and Leasing (NAICS 53) and
Management of Companies and Enterprises (NAICS 55) business
sectors. These are herein, referred to as the FIRE and
Management sectors. However. it should be noted that the industry of
owner-occupied dwellings is excluded
from this combined index.
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Position in NAICS Hierarchy
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Canada's Real Estate and Rental and Leasing (NAICS 53) sector is comprised of the following subsectors :
- Real Estate (NAICS 531)
- Rental and Leasing Services (NAICS 532)
- Lessors of Non-Financial Intangible Assets (Except Copyrighted Works) (NAICS 533)
In this section, data for the Finance and Insurance (NAICS 52), Real
Estate and Rental and Leasing (NAICS 53) (excluding owner-occupied
dwellings) and Management of Companies and Enterprises (NAICS
55) sectors are combined.
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For the first time, Statistics Canada is publishing labour productivity
data on the basis of the North American Industry Classification System
(NAICS). The annual indices on productivity correspond with values from
CANSIM Table 383-0013.
Additional data on real output and labour input were obtained from CANSIM Table
383-0015.
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Understanding Labour productivity
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Labour productivity is measured as real Gross Domestic Product (GDP) for every hour
worked in Canada's business sector. Labour productivity derived from real GDP is presented
as an index in order to avoid methodological problems associated with level
comparisons.
The business sector excludes public administration, non-profit
organizations and the Canadian System of National Accounts
(CSNA) imputation of the rental value of owner-occupied dwellings. It
is difficult to draw inferences on productivity from these sectors and they are
therefore excluded. In 1992, the business sector GDP accounted for about 71% of
the Canadian total.
Indices on labour productivity are unavailable for a number of NAICS sectors
since certain activities are excluded. Also, data for the Finance and
Insurance, Real Estate and Rental and Leasing and
Management of Companies and Enterprises sectors are combined,
as is also the case for the Textile Mills and Textile
Product Mills manufacturing subsectors.
Labour productivity measures the extent in which labour is efficiently used. An
increase in labour productivity is associated with increases to real incomes
and the standard of living for an economy.
Changes in labour productivity may result from changes in one or more of the
following factors:
- Changes in productive labour efficiency :
- size and composition of the work force
- amount and type of employee training and work incentives offered; and
- degree to which work flows are adjusted over time.
- Changes in other factors of production:
- the level of Capital Investment (e.g. more efficient
equipment)
Labour productivity may fall if an industry does not adequately invest in the
competence of its labour force, in modernizing its plants and factories, or in
improving the efficiency of its operations.
An alternative measure of labour productivity is calculated for the
Manufacturing sector and its subsectors, industry groups,
industries and national industries in the performance chapter. This measurement is
calculated as manufacturing value-added divided by the number of hours worked
by production workers. The calculation is presented as a level in current
dollars. However, 1999 is the most recent reference period, as production
hours are no longer surveyed in the Annual Survey of Manufactures.
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Labour productivity Index
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As previously noted, an index is available for the combination of the
Finance and Insurance (NAICS 52), Real Estate and Rental and Leasing
(NAICS 53) (excluding owner-occupied dwellings) and Management
of Companies and Enterprises (NAICS 55) sectors.
The graph below illustrates changes in labour productivity for the FIRE
and Management sectors as a group in comparison to the
Canadian Economy between 1997 and 2002.
Labour Productivity Index
FIRE and Management Sectors
(NAICS 52, 53 and 55 Combined*)
1997-2002
* Excludes owner-occupied dwellings
Between 1997 and 2002 labour productivity in the FIRE and
Management sectors increased 1.6 % per annum on
average. In comparison, labour productivity for the Canadian
Economy increased 2.3 % per year.
Over the most recent year, labour productivity in the FIRE and
Management sectors increased 2.8 %.
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