The Financial Post reports in its Thursday, June 4, edition that rising labour costs continued to challenge the economy as Canadian business productivity fell for the second consecutive quarter at the start of 2026. The Post's Jane Switzer writes that Statistics Canada reported a 0.5-per-cent decline in productivity in the first quarter, following a 0.3-per-cent decrease in the fourth quarter of 2025, driven largely by a 1.7-per-cent contraction in goods-producing businesses, particularly in agriculture, forestry, fishing and hunting, which saw a 3.5-per-cent drop. Productivity measures economic output per hour worked and is a key indicator of economic prosperity. Canada has faced weak productivity growth for decades and lags behind many peer countries, including the U.S. Desjardins economist Li Valencia said real GDP in the Canadian business sector has fallen three times in the last five quarters as the ongoing trade tensions with the U.S. weigh on the economy. He said, "Uncertainty surrounding the trade war will shape the near-term trajectory of Canadian business investment and productivity, with the outcome of this year's Canada–United States–Mexico Agreement joint review being pivotal."