Future of work
A curated resource of recent research on trends shaping Canada's labour market.
The OECD’s 2025 economic survey of Canada finds that, while Canada’s economy has remained broadly resilient, growth is slowing and structural weaknesses are restraining living standards. For example, real GDP growth is projected to decline to approximately 1.0% in 2025 from 1.5% in 2024 due to rising trade tensions with the United States and trade tariffs. Although Canada’s strong public finances, sound banking system, and relatively low government debt provide stability, its per capita income growth lags well behind that of many OECD peers due to chronically weak productivity.
The OECD report identified several key weaknesses that threaten Canada’s economic resilience:
- Housing affordability
Surging house prices and rents have put financial pressure on households in both cities and smaller communities across Canada. The OECD recommends boosting housing supply—and rental housing specifically—by increasing zoning flexibility, reducing regulatory barriers, and improving coordination across federal and provincial governments. The report also highlights property taxation reform as a means to improve affordability and create a fairer housing market.
- Climate change
Rising exposure to floods, wildfires, and other extreme events has made adaptation a priority. Yet, development often continues in high-risk areas, and many households remain unaware of the hazards they face. The OECD calls for better hazard mapping, improved land-use planning, enhanced risk disclosure, and stronger coordination across levels of government to improve resilience and reduce costs from climate-related disasters.
- Labour productivity
Canada’s labour output remains at 75% of U.S. levels. This is largely attributed to firms being slow to adopt new technologies and to low levels of spending on innovation and research and development (R&D). Additionally, trade barriers and barriers to competition prevent many businesses from growing and becoming increasingly dynamic. The OECD report urges reforms to reduce interprovincial trade barriers, strengthen competition in digital markets, increase R&D and technology adoption, and better integrate immigrants and women into high-productivity sectors.
The OECD contends that Canada risks remaining stagnant in per capita living standards, despite overall economic growth and a highly educated pool of talent, if it does not implement the measures highlighted in the 2025 economic survey.