Welcome to another episode of Make Money Count! Today, we’re focusing on a major economic concern for Canada: falling productivity. As global competition heats up, Canada struggles to keep pace with other developed nations, raising critical questions about how this impacts our economy and everyday lives. Join Marcus & Justin as they unpack the “why” behind Canada’s productivity slump and what’s at stake if we don’t take action.

Episode Highlights

Why Productivity Matters: The Lifeblood of Economic Growth

We explore the critical importance of productivity in any economy. Defined as the amount of output generated per hour of labour, productivity affects everything from job creation to our overall quality of life. 

The Canada-U.S. Divide: What’s Holding Us Back?

Despite similar starting points, Canada’s productivity growth lags far behind the U.S. We explore some major roadblocks, such as limited competition due to oligopolies, restrictive regulatory environments, and lackluster investment in critical infrastructure. From telecom to banking, these sectors stifle competition, reduce innovation, and hurt consumers.

Interest Rates and Mortgages: Why Canada’s Economy is Extra Sensitive

Unlike the U.S., Canada’s mortgage market magnifies the impact of interest rate shifts. Frequent renewals mean rate changes hit Canadian households harder, creating economic challenges when rates are high and limiting stimulus options when rates need to be cut. This reliance on rate adjustments makes it hard for Canada to escape slow growth cycles.

The Structural Challenges: Education, Infrastructure, and the Immigration Dilemma

Canada’s infrastructure and workforce training have lagged, contributing to weak productivity. We discuss how immigration without matching skills or training capacity adds to the challenge, increasing demands on an economy that isn’t yet primed for growth. This covers why improving education, skill-building programs, and investing in infrastructure could offer more long-term solutions.

Canada needs to rethink its economic approach if it wants to regain its competitiveness. From reducing corporate subsidies to addressing our productivity head-on, the path to a thriving economy may mean tough choices and tackling the fundamentals.

Will Canada rise to the occasion, or continue to be “held hostage” by economic policies that keep us just a step behind? Catch the full podcast for this critical discussion, and find out what needs to change for Canada’s productivity—and prosperity—to improve.

Stay tuned for more updates and insights from the Cannect team in our next episode.