Business investment per worker in Canada--a key driver of higher living standards--declined from 87.3% of U.S. level in 2014 to 54.0% in 2024

CALGARY, AB, July 16, 2026 /CNW/ -- Business investment per worker--a key driver of higher living standards--has declined in Canada from slightly lower than in the United States (87.3 per cent) in 2014, to just over half (54.0 per cent) in 2024, the latest data available, finds a new study published today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.

"The economic well-being of Canadians depends in large part on the strength of business investment, so poor investment performance is bad news for workers," said Tegan Hill, senior economist at the Fraser Institute and coauthor of Comparing Business Investment per Worker in Canada and the United States, 2007-2024.

According to the study, business investment per worker in Canada (adjusted for inflation) declined by 18.8 per cent from $20,310 in 2014 to $16,493 in 2024 (the latest year of available data). Business investment--which includes spending on equipment, machinery, factories and new technologies (but excludes residential homebuilding)--is vital to helping make Canadian workers more productive, which is ultimately the source of higher wages and living standards.

During that same period, business investment per worker (adjusted for inflation, in Canadian dollars) increased by 31.3 per cent from $23,263 to $30,555 in the U.S.

"More investment per worker means more productive workers, which in turn means higher living standards," Hill said.

The results provincially vary considerably. Five provinces (Alberta, Saskatchewan, Manitoba, Nova Scotia and Newfoundland and Labrador) recorded declines in the value of business investment per worker (inflation-adjusted), ranging from -13.3 per cent in Nova Scotia to 54.9 per cent in Newfoundland. New Brunswick recorded the largest increase during this period with an increase of 24.3 per cent, however, it was still well under the national average.

"The waning ability to attract business investment in Canada should sound alarm bells and prompt policymakers to enact immediate policy reforms to make Canada a more attractive and hospitable destination for investment."

Business investment per worker (inflation-adjusted)

	2014	2024
British Columbia	$16,416	$17,459
Alberta	$56,401	$27,294
Saskatchewan	$48,715	$33,386
Manitoba	$18,126	$13,078
Ontario	$12,096	$13,827
Quebec	$11,147	$13,584
New Brunswick	$9,895	$12,302
Nova Scotia	$10,298	$8,926
Prince Edward Island	$8,494	$9,633
Newfoundland and Labrador	$53,779	$24,241
United States	$23,263	$30,555

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The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, Montreal and Halifax and ties to a global network of think-tanks in 87 countries. Its mission is to improve the quality of life for Canadians, their families and future generations by studying, measuring and broadly communicating the effects of government policies, entrepreneurship and choice on their well-being. To protect the Institute's independence, it does not accept grants from governments or contracts for research. Visit www.fraserinstitute.org

SOURCE The Fraser Institute

MEDIA CONTACT: Tegan Hill, Director, Alberta Prosperity, Fraser Institute; To arrange media interviews or for more information, please contact: Erin Clemens, Junior Communications Coordinator, 604-688-0221 ext. 615, [email protected]