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Research

The Productivity Potential of Automation Technologies

There are different ways to measure productivity, but the simplest is labour productivity, which is the output generated by individuals and businesses for each hour worked. Over the past 20 years, Canada has faced stagnating productivity, and this is why we are now facing an ‘emergency.’ Since 2005, labour productivity in Canada, measured as GDP per hour worked, has managed to grow by only 11 percent, below the European Union (about 16 percent) and Japan (15 percent) and far behind the United States (about 25 percent). 

Automation technologies present Canadian businesses with opportunities for improved productivity, labour efficiencies, and growth. This research uses data from the Occupational and Skills Information System (OaSIS), United States Patent and Trademark Office (USPTO), and Statistics Canada to determine the impacts of automation technologies on specific occupation categories and industries. Adopting automation technologies will change how industries operate, including the types of jobs and skills needed.

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Key insights

New automation technologies, including AI, have the potential to boost productivity across Canadian industries by an average of 13.8 per cent over the next 15 years.

Potential gains are greatest in transportation and goods producing industries, which could see annual productivity growth increase by as much as 1.2 percentage points above our baseline forecast.

Industries less exposed to automation technologies could still benefit, with increases to productivity growth between 0.4 and 0.8 percentage points per year.

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