Statscans - In May, the average weekly earnings of payroll employees (seasonally adjusted) increased $1.47 to $766.32 from April. The year-to-date growth, calculated as the average of the first five months of 2007 compared with the average of the same five months in 2006, was 2.9%.

Among Canada's largest industrial sectors, earnings grew for the first five months of 2007 in manufacturing (+3.5%), health and social assistance (+2.9%), and educational services (+0.4%), while they declined in retail trade (-0.6%).

Nationally, there was little change in the number of payroll jobs in May, as the total estimated number increased only 6,900 to 14,258,800. Growth among the provinces varied, with Newfoundland and Labrador showing the largest increase (+1.3%), followed by Nova Scotia (+0.5%). Nationally, year-to-date employment growth was 0.3%. Payroll employment has increased by 41,100 since the beginning of 2007.

The average hourly earnings for hourly paid employees edged up $0.14 in May to $19.04. The average weekly hours for hourly paid employees decreased 1.0% to 31.2 hours.

- Twenty-three percent adding more workers in second half of 2007, than in the first

Toronto – CareerBuilder.ca, a leading online job site in Canada, released the results of its midyear survey, conducted by Harris Interactive®, tracking projected hiring and job search activities for the remainder of 2007. The survey, titled “2007 Canadian Job Forecast,” was conducted from 1 June to June 13, 2007, within Canada among 450 workers and more than 240 hiring managers.

“Job growth is predicted to continue at a stable pace through the end of 2007,” said Remy Piazza, Managing Director of CareerBuilder.ca. “Canadian employers will continue to struggle with a shrinking skilled labour force as Baby Boomers move closer to retirement and the smaller generations of replacement workers falls under quota. The Canadian workforce can also expect to see employers become more creative in their recruitment and retention efforts, evident in higher salaries, increased training and more flexible work cultures.”

HIRING IN THE SECOND HALF OF 2007

Four-in-ten (41 percent) Canadian employers surveyed said they increased their staffs in the last three months. Fueled by a stable economy, this momentum is expected to continue with 23 percent of employers indicating they plan to add a larger number of employees in the second half of 2007 compared to the first. Fifteen percent of employers said they will not be adding to headcount for the rest of this year.

Temporary Staff Recruitment

A third (32 percent) of employers said they hired temporary staff members in the first half of 2007. Employers plan to continue to add temporary staff through the end of the year: 17 percent plan to do it in both Q3 and Q4. Looking to the future, 39 percent of employers said they were very likely or somewhat likely to move temporary employees into permanent positions.

Diversity Recruitment

Understanding the positive influence workforce diversity has on overall business performance, employers remain committed to expanding the demographics of their staffs through the end of the year and into next.

When asked what segment of diverse workers they plan to more aggressively recruit in 2007 and 2008, employers said women (27 percent), Native Americans (14 percent), Asian workers (13 per cent), African Canadians (9 percent) and gay/lesbian workers (9 percent).

HIRING AND COMPENSATION IN Q3

Hiring

Recruitment in Q3 is expected to be lower than that of Q2 with close three-in-ten employers stating they plan to increase the size of their staffs, down from 41 percent over the last three months. Close to six-in-ten anticipate no change in headcount and five percent, the same as last quarter; say they will actually decrease headcount.

Forty-three percent of employers say they currently have open positions that they can not find qualified candidates to fill. Fifteen percent of employers say that given the shortage of top talent, they are more willing to pay to relocate a qualified candidate from another city or region to their company’s location. If fact, a quarter (24 percent) say they have paid to relocate an employee for an open position within the last two years. Twenty-seven percent of employers say they would be willing to pay up to $5000 Canadian to relocate a candidate, while 17 per cent would consider paying more.

Compensation

Employers continue to offer larger salaries to secure top talent. Thirty-seven percent of employers say they plan to increase starting salaries in the third quarter, down from 49 percent over the last three months.

Compared to the same time last year, 23 percent of employers say they are experiencing an increase in the number of current staffers who have asked for a raise in pay. Good news for employees, 15 percent of employers say it is more likely that they will give salary raises in 2007, compared to 2006.

JOB CHANGES

As a way to boost morale and keep top talent from leaving, employers are implementing increasing robust retention programs, and employee job satisfaction is reaping the benefits. Sixty-one percent of Canadian employees say they are generally satisfied with or even love their current jobs.

However, 12 percent of employees say they plan to leave their current job in the next 6 months. Nearly one-in-five (17 percent) will be leaving within one year and more than a third (35 per cent) will be gone by the middle of 2009.

Satisfaction levels may not be enough, however, to keep employees from seeking out new opportunities in search of larger salaries and increased benefits. When asked if they were looking for another job, half (51 percent) of workers said not actively, but would accept another job if one came available. Fourteen percent indicated they were actively seeking a new job.

Changing Careers

The shortage of workers is opening doors for employees to pursue positions in other careers that might not have been available in the past. Forty-four percent of workers say they are interested in changing careers altogether. In fact, four-in-ten (41 percent) workers said they have already changed careers once or twice during their professional life.

While changing careers may seem like a good idea, workers have some concerns. Thirty-eight percent of workers say the number one reason they don’t change careers is the fact that they will be forced to start over and take an entry level position. Change can be scary, with three-in-ten workers using fear as a reason to not change careers. Additionally, a quarter say that they can not financially make the move.

Female workers, more so than men, may be more open to switching careers. Forty-two percent of women say they have already changed careers one or two times, compared to a slightly lower 40 percent of men.

SURVEY METHODOLOGY

This survey was conducted online by Harris Interactive on behalf of CareerBuilder.com among 246 Canadian employers (employed full-time; not self employed; with at least some involvement in hiring decisions), and 455 Canadian employees (employed full-time; not self employed; with no involvement in hiring decisions) ages 18 and over within Canada between June 1 and June 13, 2007. Figures for age, sex, race/ethnicity, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was also used to adjust for respondents’ propensity to be online.

With a pure probability sample of 246 one could say with a ninety-five percent probability that the overall results have a sampling error of +/- 6.3 percentage points. With a pure probability sample of 455 one could say with a ninety-five percent probability that the overall results have a sampling error of +/- 4.6 percentage points. Sampling error for data from subsamples is higher and varies. However that does not take other sources of error into account. This online survey is not based on a probability sample and therefore no theoretical sampling error can be calculated.

Statistics Canada released data from the 2006 Census covering age and sex. A detailed analysis of how the nation's population age structure is changing is available in the online report Portrait of the Canadian Population in 2006, by Age and Sex, 2006 Census.

Data from the census show large-scale changes in the age distribution of Canada's population as a result of population aging. The two main factors behind the population aging are the nation's low fertility rate and increasing life expectancy.

Data from the 2006 Census showed that the number of seniors aged 65 years and over surpassed the 4-million mark for the first time.

As a result, the proportion of senior citizens has increased from 13.0% in 2001 to 13.7% in 2006. This increase in the proportion of seniors was observed at the national level as well as in every province, territory and census metropolitan area (CMA) in the country.

At the same time, the working-age population (15 to 64 years) is becoming increasingly older. The number of people approaching the age of retirement has hit a record high.

The fastest growing age group between 2001 and 2006 consisted of individuals aged 55 to 64 who are nearing retirement. The census counted nearly 3.7 million in this age group, an increase of 28.1% from 2001. This rate of growth was more than five times the national average of 5.4%.

Data also showed that there are barely enough young people entering the working age group to replace those approaching the age of retirement. Between 2001 and 2006, the population aged 15 to 24 increased by only 5.3%.

In the 1970s, for every person aged 55 to 64 years, there were 2.3 individuals in the 15 to 24 years age group. By 2001, this ratio had fallen to 1.4, and in 2006, it was down to 1.1. This means that for each person leaving the working age group, there was just over one individual entering it.

Population projections show that in about 10 years, Canada may have more people at the age where they can leave the labour force than at the age where they can begin working. This presents considerable challenges for Canadian employers and for society in general.

The rapid expansion in the number of older people (55 to 64 years) among the working age population is due to the fact that the first baby-boomers entered this age group in 2001.

Baby-boomers, that is, people who were born between 1946 and 1965, comprised 30% of Canadians in 2006. They are the largest cohort in Canada. In fact, 40 years ago, in 1966, baby-boomers made up more than 40% of the population.

Despite this aging trend, Canada is the second youngest country in the G8 group of industrialized nations. However, it has the oldest population in the Americas.

One in seven Canadians is a senior

In 2006, the census enumerated 4,335,255 persons aged 65 years and over, an 11.5% increase from 2001. More than half (56%) were women.

One out of every seven Canadians is now a senior citizen. In 2006, they accounted for a record high of 13.7% of the total population, up from 13.0% in 2001. This was nearly double the proportion of 7.7% in 1956.

In contrast, the number of children aged 14 and under declined 2.5% from 2001 to 5,579,840 in 2006. This was the second consecutive intercensal period in which this age group declined.

Children aged 14 and under accounted for 17.7% of the population in 2006, their lowest share ever in Canada. This was down from 19.1% in 2001 and well below the proportion in 1961, at the height of the baby-boom period, when one person in three was aged 14 and under.

According to the most recent population projections, seniors could outnumber children aged 14 and under within about 10 years. The growth of the elderly population will start accelerating in 2011, when the first baby-boomers turn age 65.

The census counted 21,697,805 individuals in the working-age population (aged 15 to 64), up 6.4% from 2001. In 2006, they accounted for just over two-thirds (68.6%) of the total population, up slightly from 68.0% in 2001.

Low fertility rate and increasing life expectancy are the main factors behind population aging

Two factors are largely responsible for the progressive aging of Canada's population: the low fertility rate and increasing life expectancy.

The fertility rate, which is now about 1.5 children per woman, has been below the replacement level of 2.1 since the early 1970s.

The life expectancy of Canadians increased appreciably during the 20th century and now stands at 82.5 years for women and 77.7 years for men. As a result of that increase, more Canadians are reaching the age of 65, and people are living longer after that age.

Immigration has had a significant effect on the growth and diversity of Canada's population, but its impact on population aging is minor. This is because immigrants arrive when they are about 30 years of age on average; they then age along with the rest of the population.

We're living longer: More people 80 years and over, more centenarians

The number of people aged 80 years and over surpassed the 1-million mark for the first time between 2001 and 2006, and the number of centenarians, those aged 100 and over, rose sharply.

The 2006 Census enumerated 1,167,310 people aged 80 years and over, up 25% from 2001, the second fastest increase of all age groups. This age group accounted for 26.9% of all seniors in 2006, up from 24.0% in 2001 and only 14.6% in 1956.

Of this group, 753,970, or about two-thirds, were women; they heavily outnumbered men because of their higher life expectancy.

The census also enumerated 4,635 people aged 100 years or older, up about 22% from 3,790 in 2001, and nearly 50% higher than the level of 3,125 in 1996. Five out of every six centenarians were women in 2006.

Provinces: East–West split in aging patterns still evident

As was the case in the 2001 Census, the population was generally older on average east of Ontario and younger in the West, particularly in Alberta, the Northwest Territories and Nunavut.

In every province and territory, the proportion of people aged 65 and over increased between 2001 and 2006, while the percentage of children aged 14 and under continued to decline.

The province with the highest proportion of seniors was Saskatchewan, while Alberta had the lowest proportion. Seniors accounted for 15.4% of Saskatchewan's population, well above the national average of 13.7%. In Alberta, they accounted for only 10.7% of the population.

All four Atlantic provinces had proportions of seniors that were above the national average, in sharp contrast to the situation 50 years ago when they were among the youngest provinces.

Nova Scotia was the oldest province in Atlantic Canada in 2006, with 15.1% of its residents aged 65 and over. In Newfoundland and Labrador, the proportion of children aged 14 and under declined to 15.5%, the lowest in the country.

In Quebec, seniors comprised 14.3% of the population, just above the national average. Ontario, the nation's most populous province, is also one of the youngest. Seniors accounted for only 13.6% of its population in 2006, the lowest of any province except Alberta.

British Columbia remains one of the oldest provinces due largely to the higher life expectancy observed in this province for decades. In 2006, 14.6% of its population was 65 or older, above the national average.

The region formed by the three territories combined was the youngest in Canada. Only 1 person in 20 was aged 65 years or over on average. The relative youth of the territories was due primarily to two factors: the high fertility rate, particularly among the Inuit population, and lower life expectancy.

In terms of the male–female ratio, Alberta was the only province in 2006 that had more men than women. For every 100 women, there were 100.2 men in Alberta. Nationally, there were 95.9 men for every 100 women.

Large urban centres: Kelowna the oldest, Barrie the youngest

According to the 2006 Census, the proportion of seniors aged 65 years and over in 2006 rose in all 33 CMAs. In contrast, the proportion of children aged 14 and under decreased in all CMAs.

The percentage of seniors ranged from just 9.4% of the population in Calgary to 19.0% of the population in Kelowna. Kelowna was the oldest CMA in the country, based on the proportion of seniors in its population.

Peterborough was the second oldest CMA, followed by Victoria, St. Catharines–Niagara and Trois-Rivières.

Edmonton showed the second lowest proportion of senior citizens of the 33 CMAs. Over the last 10 years, Calgary and Edmonton have enjoyed an economic boom that has attracted workers from other parts of Canada. This internal migration has probably helped to dampen the growth of the proportion that represents the elderly population in Alberta's two major urban centres.

The result is an age structure in Calgary and Edmonton with a high proportion of people aged between 20 and 44. As this age group is in its major child bearing years, the 2006 Census counted in these two urban centres a higher proportion of children compared with other CMAs.

In 2006, the youngest CMA was Barrie, where 20.8% of the population was aged 14 and under, well above the national average of 17.7%. In all, 9 of the 16 youngest CMAs in Canada were located in southern Ontario.

Parksville, Elliot Lake the oldest mid-size urban centres

In addition to 33 CMAs, Canada has 111 mid-sized urban centres (census agglomerations). These are centres that have an urban core with a population of at least 10,000, but are not a CMA.

Data showed that the two mid-sized urban centres of Parksville (British Columbia), a community of 10,993 on Vancouver Island, and Elliot Lake, a northern Ontario municipality of 11,549, were by far the oldest in Canada. In both, roughly one person in three was 65 years and older.

In addition, Parksville had the highest proportion (10.2%) in the country of people aged 80 and over.

The youngest mid-sized urban centre was Thompson, where more than one person in four was aged 14 and under. The small northern Manitoba town, which had a population of 13,593, includes a large Aboriginal community. Aboriginal people generally have a higher fertility rate.

2006 Census sub-module

Also released today are various products and services available from the 2006 Census sub-module on our website. By clicking on the Release topics and dates link, then on Age and sex, users will find the 2006 Census data for the age and sex of the Canadian population. Information on this web page is organized into three broad categories: Data products, Analysis series, and Geography.

The Data products category presents age and sex data for a wide range of standard geographic areas. Data is available through the Age and sex highlight tables, the Topic-based tabulations, the Profile release components, the 2006 Community Profiles and the Census tract profiles.

The Analysis series category presents the age and sex analytical perspective report Portrait of the Canadian Population in 2006, by Age and Sex, 2006 Census, which includes animated pyramids and vignette.

The Geography category presents thematic maps containing age and sex data for standard geographic areas of Canada. By using GeoSearch2006, an interactive mapping tool, users will find any place in Canada as well as a corresponding map of the place with its population count. A large collection of supplementary geography reference material and maps are also available.

Note to readers

Two indicators of the population age structure have been used in this analysis: 1) the proportion of people aged 65 and over and 2) the proportion of children aged 14 and under.

A population will be considered as older than another one when its proportion of senior citizens is higher. A population will be considered as younger if its proportion of children is higher.

The use of these two indicators may lead to different results than those that would be obtained using other indicators of a population age structure, such as median age.

- Say thanks. Don't underestimate the power of saying "thank you,"
either in writing or in person.
- Celebrate achievements. Honour employees' accomplishments in front
of their peers. Staff events recognizing individuals or groups can
enhance morale while highlighting exemplary behaviour.
- Give the gift of time. Reward staff accomplishments with extra
days off or extended lunch breaks. Time away from the office
allows staff members to recharge after major projects.
- Provide plum assignments. Give strong performers the option of
working on desirable projects. Doing so improves their motivation
and enthusiasm for their work, and encourages others to excel in
their positions.

Toronto - Following its mandate of creative intuition and innovative design, Mayhew, Canadaâ s leader in workspace solutions, celebrates its silver anniversary with the appointment of Marcia Mayhew as President.

What began as a small office supply shop has vastly expanded into a 5-location corporation that provides office spaces that move, touch and inspire the individual while directly impacting business results.

Marcia's commitment to excellence reflects her parents' strong sense of pride and responsibility to great design. Mark and Christine Mayhew, select their daughter and protege as the future of Mayhew and its creative community.

" It's an honour to be given the trust and accountability of leading this company,â says Marcia Mayhew. " I have grown up watching Mayhew evolve into the business it is today, and in working here as Marketing Manager over the last four years, I have witnessed many milestones. With the support of the executive team and all of Mayhewâ s talented employees, I step into this role with the utmost confidence and enthusiasm."

Under the leadership of Marcia, the company will continue to serve major Fortune 500 companiesâ transforming their workspaces for optimal performance.

"We practice what we preach,â says Mark Mayhew. â We know that the right work environment has the potential to give employees and clients energy; to enliven them and motivate them to achieve the highest level of performance. Marcia is a natural leader and without a doubt the future of Mayhew workspace design."

As Adam Legge, Director of Research and Business Information for CED said: “Three years ago, the unemployment rate in Calgary was five-to-six per cent Now, it’s three per cent. The rate has been cut in half in an extraordinarily short period of time.”

According to Evans, the provincial government doesn’t track immigration within Alberta, but it seems evident that many of those finding work in Calgary may have come from elsewhere in the province, thereby creating a more severe shortage of workers outside the province’s largest city.

This trend is only expected to increase. According to CED, Calgary is forecasted to be the location for over one-third of all new jobs in Alberta, and the city will require over 90,000 new jobs in the next five years, and 158,000 in the next ten years.

“The construction, trades and agricultural industries are the most affected right now,” said Legge. “Obviously, this problem is affecting areas such as, and particularly, Fort McMurray - much more so than Calgary.”

As companies based outside Alberta’s major centres have felt the labour crunch most acutely, there are fewer resources available to help immigrants integrate into society. Evans suggested that more should be done to assist the newest Albertans feel at home.

“I’m sick of knowing that some of these people get served last,” said Evans.

“I’m sick of hearing that we bring the men over to work, but their wives can’t find work (because they don’t speak English), and so eventually they feel they have to leave.”

Unintegrated, alienated immigrants present a dangerous social problem, she added, a lesson Alberta would do well to learn from mistakes made in Europe. Unless more is done to help immigrants feel a part of society, Evans warns of future tensions, and even violence:

“We all saw what happened in England with the bombings. We can’t just bring people in and say, that’s all we need to know.”

Regardless of where the needed workers will come from, there is no question Alberta has more jobs than potential employees: As of June 24, Alberta Economic Development’s website devoted to recruiting foreign workers provided links to 403 employment opportunities with 4,299 jobs available.

To help address the labour crunch, the province signed an agreement with the federal government to expedite the immigration process in May that would allow 25,000 foreign workers into the province annually. This won’t happen overnight, Evans said, but gradually.

“Through the provincial nominee program, we’ll add 2,500 workers this year, 5,000 for 2008 and 2009, and 8,000 by 2010,” Evans told the Forum.

“We take the labour shortage seriously, but government can't do it alone. Our labour shortage strategy is about partnerships,” added Evans.

“CalgaryWorks is working, and our government is pleased to support the initiatives here,” said Evans, who later gave Calgary Economic Development the first $100,000 installment of an eventual $250,000 to support the CalgaryWorks program.

But despite the very real challenges of the labour crunch, some companies have been criticized for recruiting outside the country. In 2006, Canadian Natural Resources Limited told CBC News that despite repeated efforts to recruit Canadians, it had to bring in 500 workers from China to complete a project.

During the first quarter, Canada's population increased 0.23%. International migration accounted for two-thirds of the increase.

As of April 1, Canada's population was estimated at 32,852,800, up 75,500 from January 1, 2007. Only the four westernmost provinces had growth rates at or above the national average.

Alberta again led the provinces in growth. Its population increased 0.57% over the first quarter, more than twice the national average. However, this growth was slower than what was measured over the course of the first quarter of 2006 (+0.77%).

The estimates show a slowdown in interprovincial migration for Alberta, a trend that started in the last quarter of 2006. The province, whose population has been booming since the second half of 2004, had a net inflow of +7,400 people in the first quarter of 2007, less than half the net in-migration of +15,600 people observed between January and March 2006.

This slowdown occurred in large part because more people left Alberta for other parts of the country. As a result, net gains from interprovincial migration increased for most other jurisdictions, except for Quebec and Yukon.

British Columbia and Saskatchewan gained population in their exchanges with Alberta for a second quarter in a row.

British Columbia's population increased 0.34%, the second-fastest increase among the provinces and the highest first-quarter growth for the province since 1997. This was due to an important increase in the number of non-permanent residents and higher net gains from interprovincial migration. British Columbia's net gains from other provinces were the highest for a first quarter since 1996.

Manitoba's quarterly growth of 0.25% exceeded the national average for only the second time since 1986. This was due to smaller losses from interprovincial migration and the highest first-quarter levels ever in immigrants and non-permanent residents.

Saskatchewan's population rose 0.23% as it continued to receive people from Alberta. Saskatchewan recorded its highest first-quarter interprovincial migration net gains since 1976.

Population growth in Ontario, at 0.22%, was lower than the national average for a third quarter in a row, a situation not observed since 1981. This was due to strong losses in interprovincial migration, especially to Alberta, and the lowest number of immigrants for a first quarter since 1999.

Quebec's population rose 0.14%, slightly slower than for the same period in the previous year. An increase in net outflows resulting from interprovincial migration, especially to Alberta, offset the increase in births and net gains from international migration. Quebec's birth rate exceeded the national average for the third consecutive quarter, a feat not seen since the 1970s.

For the first time, the four Atlantic provinces all recorded more deaths than births during the same quarter. This means that these provinces can rely only on international and interprovincial migration for an increase in their population.

Prince Edward Island's population rose 0.12%, the fifth consecutive quarterly gain. New Brunswick's population grew for a second consecutive quarter (+0.04%). Nova Scotia's population slipped 0.09%, the third straight quarterly decline. Newfoundland and Labrador suffered its largest first-quarter loss (-0.39%) since 2001.

In the North, Nunavut's population growth, at 0.87%, was more than three times the national average, due to its fertility rate, the strongest in the country. The population of the Northwest Territories was virtually unchanged (+0.04%), while the population of the Yukon declined 0.48%.

Canada's population estimates and demographic growth1
	January 1, 2007pp	April 1, 2007pp	January 1, 2007 to April 1, 2007
	Number		% change
Canada	32,777,304	32,852,849	0.23
Newfoundland and Labrador	508,548	506,548	-0.39
Prince Edward Island	138,632	138,800	0.12
Nova Scotia	933,793	932,966	-0.09
New Brunswick	748,582	748,878	0.04
Quebec	7,676,097	7,687,068	0.14
Ontario	12,726,336	12,753,702	0.22
Manitoba	1,180,004	1,182,921	0.25
Saskatchewan	987,939	990,212	0.23
Alberta	3,435,511	3,455,062	0.57
British Columbia	4,338,106	4,352,798	0.34
Yukon	31,032	30,883	-0.48
Northwest Territories	41,777	41,795	0.04
Nunavut	30,947	31,216	0.87
pp preliminary postcensal estimates 1. These estimates are based on the 2001 Census population counts adjusted for net undercoverage.

Among Canada's largest industrial sectors, earnings grew for the first four months of 2007 in manufacturing (+3.5%), in health and social assistance (+3.1%) and in education services (+0.2%), but declined 0.7% in retail trade.

Most provinces reported growth in average weekly earnings. Quebec had a slight decrease (-0.5%) in average weekly earnings in April, although the province continues to show overall earnings growth with a year-to-date increase of 2.8%. Manitoba and Prince Edward Island were little changed.

Nationally, there was a decrease of 15,400 payroll jobs (-0.1%) in April, lowering the total estimated number of payroll jobs to 14,235,200. Growth among the provinces varied, with Manitoba showing the largest increase (+0.8%). Nationally, year-to-date employment growth is 0.1%.

The average hourly earnings for hourly paid employees edged up 0.2% in April to $18.95. The average weekly hours for hourly paid employees increased 0.3% to 31.3 hours.

Investment in capital, rather than gains in worker skills or technological change, was the most important factor in the growth in labour productivity in the business sector during the past four decades, according to a new study.

Between 1961 and 2005, labour productivity, one of the key indicators of an economy's health, rose at an annual rate of 2.1%. This study assessed the contribution of three main components of this growth.

These components are: gains that originate from changes in capital intensity (the amount of capital per hour worked); gains from changes in labour composition (involving more highly educated or more experienced workers); and growth in multifactor productivity, which is generally everything that cannot be accounted for by labour and capital.

The study found that during this 45-year period, increases in capital intensity were the most important factor, contributing about 55% of growth in labour productivity. (In 2005 alone, capital intensity accounted for about three-quarters of the growth.)

Multifactor productivity, the second most important factor, accounted for about one-quarter of the growth in labour productivity during this period. Growth in this area is often associated with technological change, organizational change or economies of scale.

The remainder, about 20%, came from changes in the composition of labour. A positive labour composition effect reflects the increase in the average educational attainment and experience levels of workers.

Labour productivity is a measure of the real gross domestic product (GDP) per hour worked. Over time, it serves to improve the population's standard of living and business competitiveness.

Productivity gains are important because they are closely connected with changes in real wages over the long run.