Investing in natural resources sector a solution to Canada’s productivity problem, report says

OTTAWA, Sept 10, 2024 – A new report from the Canadian Chamber of Commerce’s Business Data Lab (BDL) says Canada’s productivity problem can be addressed by a renewed focus on enabling and investing in Canada’s natural resources sector.

The report, Canada’s Natural Wealth: Highlighting Canada’s strong natural resources sector, assessing the economic challenges, and identifying growth opportunities, provides recommendations to address Canada’s place as one of the least productive G7 nations, with the country facing significant economic challenges, low productivity, declining living standards, regulatory uncertainty, and weak business investment.

With the Bank of Canada calling Canada’s lagging productivity an “emergency,” and the International Monetary Fund recently noting that “boosting Canada’s lagging productivity and raising living standards remains the key priority,” the report points to investment in, and support of, the natural resources sector as part of the solution.

“The natural resources sector is a significant part of the Canadian economy, with benefits being felt by other sectors throughout the supply chain. It’s the second-largest sector and in 2023 paid annual compensation nearly $25,000 above the average,” says Andrew DiCapua, Senior Economist with the BDL and the report’s lead author. “The sector can do this because of its productivity prowess, which is closely linked to the country’s prosperity and long-term standard of living. This is why increasing investment in high-productivity sectors, particularly within natural resources, is an obvious remedy to our productivity challenges.”

The report underscores an urgent need to develop a national strategy that promotes the sustainable development and export of Canada’s natural resources, ensuring alignment with environmental goals while maximizing economic benefits. And given the natural resources sector’s higher-than-average Indigenous workforce participation, higher wage opportunities can help increase Indigenous employment and economic participation, furthering economic reconciliation efforts by supporting Indigenous-owned businesses, equity partnerships, and employment.

Other recommendations in the report suggest that Canada can better tap its natural wealth by simplifying our regulatory environment, expediting the delivery of investment tax credits for important capital projects that reduce emissions, committing to long-term investment through a Canada trade infrastructure plan, and promoting public awareness and support for resource development.

The report is released ahead of the Canadian Chamber’s five-city speaking tour, with experts from leading Canadian organizations in the natural resources sector discussing how to harness Canada’s natural resources to strengthen our economy, meet global demands, support Indigenous reconciliation, and strive for a better life for all Canadians.

About the Canadian Chamber of Commerce — The Future of Business Success 

The Canadian Chamber of Commerce is Canada’s largest and most activated business network — representing over 400 chambers of commerce and boards of trade and more than 200,000 business of all sizes, from all sectors of the economy and from every part of the country — working to create the conditions for our collective success. The Canadian Chamber of Commerce is the undisputed champion and catalyst for the future of business success. From working with government on economy-friendly policy to providing services that inform commerce and enable trade, we give each of our members more of what they need to succeed: insight into markets, competitors and trends, influence over the decisions and policies that drive business success and impact on business and economic performance.   

Contact 

Karl Oczkowski 
Senior Director, Corporate Communications and PR 
613.238.4000 (2231) 
koczkowski@chamber.ca 

Rewa Mourad
Public Relations Specialist
rmourad@chamber.ca