Comparing Business Investment per Worker In Canada and the United States, 2007–2024
Comparing Business Investment per Worker In Canada and the United States, 2007–2024
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Business investment per worker in Canada—a key driver of higher living standards—declined from 87.3% of U.S. level in 2014 to 54.0% in 2024
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By: Tegan Hill, Joel Emes and Taylor Oliver
Comparing Business Investment per Worker In Canada and the United States, 2007–2024
- Economists have warned of Canada’s weak business investment, particularly compared to the United States. This should concern Canadians as strong business investment is key to higher incomes, greater economic prosperity, and improved living standards.
- Real ($2017) non-residential business investment per worker in the United States exceeded that of Canada in every year from 2007 to 2024: Canada’s business investment declined by $852 per worker from $17,345 to $16,493 while US investment grew by $11,203 per worker from $19,352 to $30,555.
- The gap between Canada and the United States increased significantly after 2014 as real business investment began to decline in Canada. In 2014, Canada invested about 87 cents per worker for every dollar invested in the United States; in 2024, investment was 54 cents for every US dollar.
- In 2014, three Canadian provinces had significantly higher real business investment per worker than the United States ($23,263): Alberta ($56,401), Newfoundland & Labrador ($53,779), and Saskatchewan ($48,715). From 2014 to 2024, however, US growth in real business investment per worker was higher than growth in any Canadian province. In fact, growth declined in five provinces: Alberta, Newfoundland & Labrador, Saskatchewan, Manitoba, and Nova Scotia. By 2024, real US business investment per worker ($30,555) exceeded that of any Canadian province except Saskatchewan ($33,386).
- Canadian prosperity depends in large part on the strength of business investment. Policy makers must recognize the current challenge, understand its causes, and prioritize policies that support business investment moving forward.
<p><strong><em>Comparing Business Investment per Worker in Canada and the United States, 2007-2024</em></strong> finds that business investment per worker in Canada—which is a key driver of higher living standards—declined by 19 per cent from 2014 to 2024. During the same time, business investment per worker increased by 31 per cent in the United States.</p>
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