Labour productivity of Canadian businesses rose 0.2% in Q1 2025, slowing from a upwardly revised 1.2% in Q4 2024. Still, this marks a second consecutive quarterly gain—the first such streak since the COVID-19 pandemic. The increase was driven by goods-producing industries, where productivity rose 0.8% versus 0.3% in the previous quarter. In contrast, service-producing sectors saw a 0.5% decline after a 1.3% rebound in Q4. Productivity increased in half of the 16 main sectors, led by wholesale trade (2.6%), agriculture and forestry (2.0%), and utilities (1.5%), while real estate posted the sharpest drop (-3.9%). Total hours worked rose 0.4%, rebounding from a 0.5% decline, driven by services. Unit labour costs fell 0.3%, the first drop after four straight quarters of increases.