Economic output per hour worked at private businesses plunged one per cent in the second quarter, Statistics Canada reported. The biggest drop since the final three months of 2022 halted a temporary recovery in a key measure of the country’s ability to generate wealth. (The Logic)

Talking point: Bank of Canada senior deputy governor Carolyn Rogers declared in March 2024 that it was time to “break the glass” and sound the alarm over the years-long decline in labour productivity. The alarm is still ringing, as a big jump at the end of 2024 was all but wiped out in the first half of 2025. The trade war might have amplified the trend. Gross domestic product declined for the first time in seven quarters, yet hours worked actually increased, perhaps because employers are reluctant to fire staff before they know the new rules of North American commerce. As they wait, they might read The Logic’s Resilient Canada series for context on why this matters so much.