OTTAWA (Reuters) - The labor productivity of Canadian businesses grew by 0.4 percent in the third quarter as the economy started to recover from a series of setbacks earlier in the year, Statistics Canada said on Friday.
Analysts had expected a 0.2 percent quarter-on-quarter decline after productivity dropped by a revised 1.0 percent in the second quarter on temporary factors such as the Japanese tsunami as well as wildfires in Canada's energy patch.
The increase in productivity was the largest since the 0.8 percent advance recorded in the third quarter of 2010.
The real gross domestic product of businesses rose by 1.0 percent in the third quarter of 2011 on a stronger performance by goods-producing industries which had born the brunt of the earlier problems.
Hours worked grew by 0.7 percent while labor costs per unit dropped by 0.5 percent after five consecutive quarterly increases.
By comparison, the productivity of businesses in the United States increased by 0.5 percent in the third quarter.
Reporting by David Ljunggren; Editing by Chizu Nomiyama