Canada's Business Investment per Worker Falls 16% to $17,600 by 2024
Updated
Updated · iedm.org · Jun 24
Canada's Business Investment per Worker Falls 16% to $17,600 by 2024
1 articles · Updated · iedm.org · Jun 24
Summary
$17,600 per worker in 2024 marked a 16% drop from roughly $20,900 in 2014, underscoring a decade-long slide in the investment that drives productivity and wages.
That decline coincided with a 3.3% fall in inflation-adjusted machinery and equipment stock even as Canada's population grew 16.4% and the economy expanded 21.1%.
$828.4 billion more Canadian capital was invested abroad than foreign capital held in Canada by 2025, up from a $100.5 billion gap in 2014, signaling stronger perceived returns outside the country.
$96.8 billion in 2025 foreign direct investment looked strong in nominal terms, but equaled just 2.9% of GDP and nearly half came from mergers and acquisitions rather than new productive capacity.
48% of Canadian venture-backed founders who raised more than $1 million in 2024 were based in the United States, while business R&D stayed at 1.1% of GDP versus the OECD's 2.0%, pointing to a broader competitiveness problem.
Why are Canada's own pension funds and entrepreneurs betting against its economic future?
Is Canada's housing obsession crippling its ability to innovate and compete globally?
Canada’s Capital Crisis: The Sharp Decline in Business Investment Per Worker and Its Economic Consequences
Overview
Canada has seen a sharp decline in business investment per worker since 2015, reversing the strong growth that was driven by the extraction sector up to 2014. This drop means Canadian workers now have less capital to work with, widening the gap with the United States and other OECD countries after years of progress. The report shows that this shrinking capital base is weakening productivity and living standards, as investment and productivity are closely linked. Without renewed investment, Canada risks falling further behind its peers, making it harder for workers and businesses to compete globally.