Oil and gas drives productivity in Newfoundland but is a drag in Alberta

“As a result of this sustained strong pattern of productivity growth over the past ten years, output per hour in Newfoundland and Labrador rose from $24.7 in 1997 to $39.6 in 2007 — the highest in the country and 9.7% above the national average. In sharp contrast to Newfoundland, productivity growth in Alberta, at 1% per year, was the lowest in Canada due to persistent declines (-4.3%) in output per hour in mining and oil and gas extraction caused by the shift from low cost conventional oil extraction to higher cost/capital intensive non-conventional (oil sands) petroleum production.” The Journal of Commerce has published an interested read comparing drivers of productivity growth throughout Canada.