Canada is facing a productivity crisis that threatens wages, competitiveness and long-term prosperity. Canadian productivity lags behind the United States by 28 per cent and ranks 18th among Organisation for Economic Co-operation and Development (OECD) countries.

Productivity is the economic value of the goods or services produced compared to the amount of work it took to produce them. Productivity should matter to every Canadian, because it directly influences inflation and income, and its effects are felt by all.

Read more: Canada is falling behind its peers in terms of living standards — can it catch up?

Productivity emerges from the interplay of three forces: robust capital investment, a supportive business environment and, most critically, people with the competencies the economy demands.

People play a disproportionate role, as they not only drive investment decisions but also shape the business climate. Collectively, people are known as human capital: the knowledge, skills and capabilities embedded in the workforce.

Building this capital is a shared responsibility of families, educators, employers and policymakers. It begins early in life and continues throughout both formal and informal learning experiences. The question is whether Canada’s current approach to building that capital is fit for the challenges ahead.

We are researchers in management and economics who collaborated with a team of researchers and industry experts on The Productivity Project, concerned with how Canada develops its human capital. Partners in this project include the Alberta Centre for Labour Market Research, the Canada West Foundation, Mount Royal University’s Institute for Community Prosperity and the LearningCITY Lab.

In Canada, post-secondary education plays an oversized role in developing human capital. The percentage of the population that has completed post-secondary education in Canada is 63 per cent — 22 per cent higher than the OECD........

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