State of the Evidence on Health as a Determinant of Productivity

Canada's labour productivity performance has been abysmal since 2000, both relative to our historical experience and to that in the United States. In theory, a deterioration of the health status of Canadian workers could explain slower productivity growth. However, the evidence does not support this hypothesis. Nevertheless, there is no doubt that illness and disability impose a massive indirect economic burden on the Canadian economy because many persons of working age are unable to work. Canada's potential level of "social productivity" is lower because of this situation. This is an output shortfall issue, not a conventional productivity issue, and it is important not to confuse the two.