Non-compete and related clauses are fairly common in Canada. According to employers, between 29% and 39% of private-sector employees are currently bound by a non-compete clause compared to an average of 20% to 30% across the OECD countries covered by the survey. Results from the employee survey confirm a high prevalence: 20% of workers report being bound by a non-compete clause, with an additional 21% who believe they “probably” are, compared to an average of 15% and 21% across the OECD countries covered by the survey.
Canada Economic Snapshot
This snapshot offers an overview of Canada’s economic trends and prospects, including GDP and inflation projections, growth prospects, and structural reform priorities, drawing from the OECD Economic Survey, Economic Outlook, and Foundations for Growth and Competitiveness reports.
Key links
Key findings on non-compete and related clauses for Canada, July 2026
Non-compete and related clauses are widespread and their use is rising
Economic Outlook: GDP and inflation projections, June 2026
GDP growth is expected to strengthen over 2026 and 2027, reaching 1.2% and 1.7% respectively, as the economy recovers from the 2025 trade‑related slowdown triggered by higher US tariffs. Household consumption and government spending on defence and infrastructure will continue to underpin growth, while business investment should recover gradually. Given Canada’s position as a net energy exporter, exporters are set to benefit from higher energy prices linked to the Middle East conflict. Headline inflation is set to rise temporarily before easing back toward 2% over the projection horizon, while core inflation should remain closer to target, restrained by persistent economic slack.
Monetary policy has remained on hold at 2.25% since October 2025 and is expected to stay unchanged in the near term, as the Bank of Canada is set to look through temporary energy‑related price increases given the remaining economic slack. Fiscal policy is projected to ease further in 2026, with a broadly neutral stance assumed for 2027, which appears appropriate. Key policy priorities are advancing internal market reforms, improving trade diversification and infrastructure delivery, and accelerating digitalisation.
Economic Survey of Canada - May 2025
Canada's macroeconomic framework is robust, supported by strong public finances and a well-capitalised banking sector. However, the economy faces significant headwinds from tariffs with the United States. High household mortgage debt remains another vulnerability, and high debt service costs weigh on household finances. There is also room to improve the efficiency of the tax structure. Housing affordability has been declining over recent years. Policies to boost housing supply, such as allowing higher density housing and expediting the permitting process, should be strengthened. Additional support should focus on social and affordable housing. While Canada has a comprehensive carbon pricing system that should be preserved, including the fuel charge for consumers, additional policies are needed to adapt to climate risks.
These include improving risk disclosure, preventing land development in risk-prone areas, enhancing infrastructure resilience, and strengthening insurance coverage. Canada's labour productivity performance lags its peers. Boosting productivity requires a combination of policies, including rebalancing R&D support, reducing regulatory barriers in internal markets, enhancing competition and digitalisation of the economy, and fully utilising women's skills.
SPECIAL FEATURES: IMPROVING HOUSING AFFORDABILITY, ADAPTING TO CLIMATE CHANGE CHALLENGES, RAISING BUSINESS SECTOR PRODUCTIVITY
Further reading
Foundations for Growth and Competitiveness, April 2026
Canada’s GDP per capita (in PPP) is slightly above the OECD average but remains below that of top-performing countries, despite significant potential for higher levels thanks to strong institutions, a highly skilled workforce, and abundant natural resources. This gap is largely due to a below-average productivity level, which has declined further relative to top-performing economies in recent years. The capital stock per worker also remains below average. While overall labour utilisation is high, female labour force participation continues to lag slightly that of men.
Policy priorities should focus on boosting sluggish productivity growth by enhancing investment in physical and digital infrastructure and fostering a more competitive and dynamic business environment. Further key actions include reducing interprovincial barriers to trade and labour mobility, and lowering entry barriers in regulated sectors, including restrictions on foreign investment in these sectors. Labour utilisation among women and other underrepresented groups, such as immigrants, also has room for improvement.
