Productivity is a national crisis and Canada’s Productivity Summit will help develop sensible solutions that support long-term economic prosperity

The media headlines this year leave little doubt Canada’s productivity growth has reached “crisis levels” and “the alarm bells are ringing” over “Canada’s Achilles heel” that will undermine our future prosperity.

It was Carolyn Rogers, senior deputy governor of the Bank of Canada, who added a renewed sense of urgency to what is a long-standing issue this spring when she warned: “You’ve seen those signs that say, 'In emergency, break glass.’ Well, it’s time to break the glass.”

Rogers' blunt assessment of the state of the economy thrust productivity, admittedly an abstract concept to most Canadians, into the public conversation and moved it higher on the public policy agenda. 

Among those taking up the call to action and provide practical recommendations for policymakers to invigorate sustained economic growth are the list of influential speakers who will help chart a path forward at Canada’s Productivity Summit. 

The Summit, hosted by the University of Calgary’s School of Public Policy (SPP), with the Government of Alberta the presenting sponsor, takes place Oct. 16-17 at the new BMO Centre at Stampede Park.

The theme for the two-day conference, which is open to the public, is Driving Investment for Economic Growth and Prosperity. It will provide an opportunity for hundreds of business and community leaders, economists, policymakers and scholars from across Canada to collaborate and discuss creative ideas on a path forward for the country. 

The conference’s lineup of distinguished speakers will address the underlying foundations for growth and lasting prosperity including talent, innovation, trade, tax policy and economic reconciliation. There will also be breakout sessions on the specific productivity challenges for key sectors including natural resources, construction, manufacturing, telecommunications and financial services.

The agenda includes a fireside chat with Alberta Premier Danielle Smith. 

“A key role the School of Public Policy plays in providing decision-makers with practical options to create policy is bringing together innovative thinkers with diverse perspectives to discuss and develop those ideas," says SPP director Martha Hall Findlay. “For people who attend, it is a unique chance to be involved in the policy process at the ground level for what is really an all-of-Canada challenge.”

Prioritizing productivity growth will be crucial for all orders of government to sustain a high quality of life and fostering a resilient and dynamic economy.

“Lower productivity almost always means lower living standards. And slow productivity growth in recent years has worsened Canada’s affordability challenges considerably,” says Dr. Trevor Tombe, PhD, director of fiscal and economic policy at SPP and a member of the steering committee that developed the program for the summit. “The prosperity gap between Canada and the United States is wider today than it has been in nearly a century. But this isn’t inevitable; improvements are possible.”

Canada had the sixth most productive economy in the Organization of Economic Co-operation and Development in 1970, but had fallen to 18th as of 2022, with most of that decline in the last 15 years.

Increasing productivity isn’t simply getting people to working harder and produce more. What it does involve is finding ways – such as implementing new technology – so workers can create more value when they are on the job. The bottom line is higher productivity generates more wealth. 

There are many explanations for Canada’s steady decline in productivity relative to other countries, particularly the U.S., over the last several decades. They range from a lack of business innovation, lacklustre capital investment and interprovincial trade barriers, to inefficient features of our taxation and regulatory system.

Bringing together experts from various sectors of the economy with diverse perspectives from across the country is an important step and a way for summit attendees to contribute to shaping the future of our country’s economic landscape.

“This is about getting Canadians better wages and fighting inflation,” says Nate Horner, Alberta minister of finance and president of Treasury Board. “This summit will gather some of the best minds out there to better define this problem and propose solutions.”

Learn more about Canada’s Productivity Summit and register to attend.