The Urgent Need to Improve Productivity in Quebec Organizations in Light of U.S. Tariffs

In an increasingly competitive global economic environment, the imposition of tariffs by the United States poses a direct threat to Quebec businesses. These trade barriers limit their access to foreign markets, increase export costs, and undermine their competitive position. To address this, there is only one course of action: improving productivity.

Quebec has historically lagged behind other Canadian provinces in terms of productivity, which is a cause for concern. In 2024, annual labor productivity in Quebec stood at 59.0$0 per hour worked, compared to 62.10 in Ontario and 74.10 in Saskatchewan. This gap can be attributed in particular to underutilization of technology, low levels of investment in research and development, and work organization that is sometimes inefficient. Compared internationally, Quebec lags behind developed countries. Productivity there is about 31% lower than in these advanced economies.

• Do you measure productivity in your organization? What formula do you use—$ per hour worked, or something else?

There is, however, a silver lining. According to an analysis published in 2025, the productivity gap between Quebec and the Canadian average narrowed from 7.2% in 2019 to 5.6% in 2023, indicating some catching up.  From 2019 to 2021, labor productivity in Quebec increased by 5.6%, compared with 2.5% for Canada as a whole and 1.5% for Ontario. This shows that Quebec is progressing faster than its neighbors, even though it started from a lower baseline.

• Do you see the same situation in your organization? What steps are you taking to achieve this?

This productivity gap has a direct impact on the standard of living of Quebecers. According to the Canadian Department of Finance, if the current trend continues, the country’s economic gap could reach $18,000 per capita by 2060. For Quebec businesses, this means a reduced ability to offer competitive wages, invest in innovation, and weather economic shocks such as U.S. tariffs.

To make up for this delay, my experience shows that organizations must follow a logical sequence focused on people, processes, and technologies (in that order):

• Invest in ongoing employee training;
• Improve and standardize processes;
• Foster a culture of innovation and collaboration;
• Implement technologies that are tailored to your context and promote value creation.