Workers in for another year of modest salary gains

Widespread uncertainty about Canada’s economic climate and business conditions means workers will have to make due with small salary increases in 2017.

The Conference Board of Canada’s Compensation Planning Outlook 2017 projects average base increases for non-unionized employees of 2.2% next year, with the lowest increases going to workers in Alberta and in the oil and gas industry.

Read: People aged 55 and up are heating up the job market

“The economic growth we saw in the first quarter of 2016 quickly tapered off and the energy sector has been hit particularly hard. While conditions are expected to improve, Canadian organizations are being cautious and opting for another year of modest wage increases,” says Allison Cowan, director, Compensation Research Centre, The Conference Board of Canada.

Highlights

• Workers in the high technology sector are projected to receive the highest increases, at 2.8%.
• Workers in the food, beverage, and tobacco industry and the finance, insurance, and real estate industry, will gain an average of 2.7%.
• Workers in the oil and gas sector are estimated to receive the lowest pay raises among the industries, at 1.1%.
• The strain on energy companies means 48% are planning to freeze salaries in 2017.
• Job creation in 2016 is projected to be weak at just 107,000 jobs nationally, the worst performance since the 2008-09 recession.

Read: Are Liberals doing enough to boost employment?

Regionally, workers in Manitoba are expected to have the highest pay raises with an average projected increase of 2.7%. In Quebec and British Columbia, workers can expect salary gains at 2.5%, and those in Ontario and Saskatchewan at 2.4%. In the Atlantic provinces, the projected increases are low at just 1.9%.

More than half — 58% — of organizations are experiencing difficulty recruiting and retaining employees with specific skills. The top professions in highest demand include specialist IT, skilled trades, engineering, management, and sales and marketing.

Read: Snapshot: Canadian economic data

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.