By 2028, the labour productivity levels in New Brunswick's manufacturing sector will be equal to or greater than national levels.
OVERVIEW
Problem
Labour productivity is a measure of output (GDP) per labour hour. In 2018, New Brunswick’s manufacturing productivity was below the national average by $16.50 per labour hour, the greatest difference since 2014.
Cause
New Brunswick has an aging population. This is a key concern within the manufacturing industry, where the number of workers under the age of 55 has dropped significantly as the population ages. One of the main reasons behind the decrease in labour productivity is the difficulty in attracting and keeping young workers in New Brunswick’s manufacturing industries.
Importance
A productive and efficient labour force can contribute to a healthy market and prompt economic growth. If New Brunswick can increase labour productivity, specifically in the manufacturing sector, the increased output would contribute to higher profits and GDP levels for the province.
Recommendation
For New Brunswick’s labour force to boost the provincial economy, the province should aim to reach or surpass national levels of productivity in the manufacturing sector by 2028.
