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Labour Market Influence On Canada

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As defined by the The Organisation for Economic Co-operation and Development (OECD), labour productivity is defined as "output per unit of labour input." The three levers of influence include: 1) investment and saving in capital (ex. machine and equipment accumulation and organizational and infrastructure improvements); 2) human capital driven by an improvement in the health and skills ability of workers; 3) New technology generation. It is an important measurement because how effectively work is done by employees impacts a country's economic growth. It helps policy makers and economists monitor the effects of labour market policies and can help to investigate the relationship between labour market metrics and the quality of life …show more content…
Canadians seem to be more risk averse than Americans, as quantified by a recent CFO survey released by Deloitte. A culture of business innovation is driven by iteration and an openness to failure. A level of risk aversion contributes to a lag in business innovation. Another factor is the sheer difference in the size of each market. Business innovation relies on opening industries to competitive pressures. With 1/10 of the market size of the U.S., it is much more difficult to foster competition in Canada. Increased competition can support innovation. Differences in policy environments and capital intensity quality and levels are also contributors. Canadian firms have not been reinvesting profits in areas supporting long-run competitiveness (ex. human capital and R&D). The U.S. made significantly larger investments in machinery and equipment over the 1990's, particularly information technology. These were emerging technologies that diffused across industries in the U.S. to widen the innovation gap between …show more content…
A government-industry-university partnership to focus investment efforts on cutting edge machinery and equipment for students at an early age can help Canada capitalize on future trends in entrepreneurship and emerging technologies. These could include 3-D printers within classrooms, biotechnology software upgrades for high potential research facilities, and supporting partnerships between entrepreneurs and industry to capitalize on the Internet of Things revolution. With early exposure to these breakthrough

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