BY ELISABETH SAFTIUK, VICE-PRESIDENT OF POLICY AND GOVERNMENT RELATIONS, MANITOBA CHAMBERS OF COMMERCE
Canada has a productivity problem. For Manitobans, that reality hits close to home. Slower wage growth, fewer career pathways and less competitive businesses all stem from the same issue: we’re simply not producing as much value for every hour worked. The question is, what are we going to do about it?
Productivity is about efficiency. It reflects how effectively an economy transforms its inputs — like capital investment, a supportive business environment and skilled people —into outputs such as goods, services and, ultimately, income.
And at the heart of every productivity story is people. Productivity is powered by workforce — by the tools, technology and systems that help individuals perform at their best. It’s not an abstract metric; it’s a reflection of how effectively our skills, effort and creativity are being put to work. When productivity grows, wages and living standards can rise without longer hours or higher costs. When it stalls, as it has in Canada, businesses lose competitiveness, families feel the strain, and the economy as a whole falls behind.
Productivity is the engine of economic growth, and people are the fuel that powers it. Investments in education, skills development and workplace health enhance an individual’s ability to contribute productively to their organization. When replicated across industries and communities, these gains compound — strengthening Canada’s economy and securing long-term prosperity.
Canada’s productivity challenge
Fifty years ago, Canada’s productivity outpaced that of the United States. Today, according to the Organisation for Economic Co-operation and Development (OECD), we lag the U.S. by 28 per cent. Despite being one of the most educated populations in the G7, our productivity is stagnant. That’s Canada’s productivity paradox. We have exceptional talent, yet a persistent gap in productivity outcomes.
The contrast is striking. In 2024, nearly two-thirds of Canadians aged 25 to 64 held a post-secondary credential — the highest rate among G7 countries and well above the OECD average of 41 per cent. But despite this strong foundation of education, Canada’s productivity growth has not only failed to keep pace, it has worsened over the past decade, as RBC research makes clear.
The Canada West Foundation points to a critical driver of Canada’s productivity gap: slow adoption of innovation. The Productivity Project — a collaboration of experts from academia, industry and policy — finds that Canadian firms have been hesitant to embrace new technologies and advanced digital tools, placing Canada 15th among 20 peer countries in innovation performance.
These factors highlight the urgency of addressing Canada’s productivity challenge, not as an abstract policy debate but as a practical barrier to competitiveness and prosperity.
Generative AI: A turning point
AI dominates headlines, think pieces and predictions about the future. It can feel hard to separate the noise from what matters most for businesses on the ground. The truth is that the hype ends where the workplace begins. Generative, predictive and agentic AI are already reshaping how work gets done. These tools can summarize documents, analyze large data sets, forecast trends and even support creative tasks like drafting reports or designing visuals. Used effectively, they hold the potential to reverse Canada’s long-standing decline in productivity.
And the impact is measurable. An MIT study involving 453 university-educated professionals found that participants who used ChatGPT to help with tasks completed their work about 40 per cent faster. Similarly, Google estimates the average Canadian worker could save 100 hours a year by adopting these technologies.
And, yet, Canada lags. We are a global leader in AI research but slow to put it into practice. Closing this gap will take more than innovation on paper. It will require investment, adoption and action from both businesses and government. A coordinated approach is key.
If we succeed, AI can become a catalyst for higher productivity, greater competitiveness and stronger economic growth across the country.
Why Manitobans should care
For business owners, productivity isn’t a theoretical number. It’s about competitiveness, profitability and growth. Higher productivity means you can pay workers more, invest in new products and compete globally. For families, it means stronger wages, more career pathways and a higher standard of living.
Put simply: if productivity doesn’t improve, local businesses will face higher costs and lose ground to global competitors. For workers, it will show up as slower wage growth, limited upward mobility and less economic security.
How the Manitoba Chambers is responding
Slow national adoption of AI creates an opportunity for Manitoba to lead. With support from the provincial government, the Manitoba Chambers of Commerce, in partnership with The Winnipeg Chamber of Commerce, and the chamber network, has launched Manitoba AI Pathways (MAP) to address this challenge. The program will deliver AI training to local chambers of commerce and SMEs across the province. The training is designed to help chambers and businesses put AI tools to work in their daily operations.
The aim is to reduce the knowledge gap, encourage adoption and build a foundation for Manitoba’s long-term productivity growth. It’s not the full solution, but it is a practical step in the right direction, helping Manitoba businesses grow, compete and build long-term success.
From challenge to opportunity
Canada’s productivity problem didn’t appear overnight, and it won’t be solved overnight. But by investing in people, embracing innovation and fostering practical adoption of tools like AI, we can build an economy that works smarter, competes harder and secures a brighter future for all Manitobans. ■
