Canada’s underperformance in productivity has attracted a lot of limelight recently. It’s not a new problem, but the gap (especially when measured against the U.S.) has simply gotten too large to ignore. In the 1970s, the level of Canadian productivity was roughly 90% of U.S. levels. Today it’s more like 70%. That deterioration over the decades leads to an enormous $20,000 earnings gap, between an average Canadian and an average American currently per year.

Indeed, historically, gains in productivity have correlated well with real wage growth. And that’s really why everyone should care about slower productivity. Because at its core, a lack of productivity growth means a lack of improvement in living standards.

On this episode of the 10-Minute Take, join RBC Assistant Chief Economist Nathan Janzen and Economist Claire Fan as they tackle productivity. They’ll start by going over all the basics – what productivity is, how it’s measured and why it matters, before detailing a few of the many drivers underlining Canada’s underperformance, and what could help in the period ahead.