Canada has lowest labour costs

|Canadian HR Reporter|Last Updated: 04/09/2002

Canada continues to be one of the most affordable industrialized countries to set up shop in largely due to the low cost of labour.

A study of nine nations from North America, Europe and Asia looked at factors affecting the cost of doing business including labour, transportation costs and corporate and income taxes. Canada was found to have a significant advantage over the United States. Labour costs, comprising salaries, statutory benefits and other benefits, is the most important cost factor and Canada had the lowest overall labour costs.

“The good news story for Canadians, both businesses and individual, is that Canada has a very competitive cost structure and a lot of the fundamentals are right,” said Stuart MacKay, of MMK Consulting, the firm that conducted the study, Competitive Alternatives, on behalf of KPMG.