In the fourth quarter last year, Canadian labour productivity experience its largest gain since the first quarter of 1998 (1.4 per cent). As well, manufacturing sales were up 2.4 per cent in January – this was unexpected, as economists had been expecting a 0.6 per cent gain. (Source)
So what does this mean for us? It is definitely a good sign, but there is always a chance we expect more of this than there actually is. By just taking a look at what happened in the fourth quarter, one may think that it’s time to start hiring more workers for the expected increase in business – however, if businesses try to grow to the size they were previously too quickly, it may once again result in strains on those businesses. While the growth is definitely something to embrace, stay cautious about getting too far ahead of what your business can handle at its current state.