The economy may be uncertain, but it looks like Canadian workers can still expect their salaries to increase—albeit, at a modest rate.
Salaries are predicted to rise by an average of 3.1% in 2012, the Conference Board of Canada announced at its Compensation Outlook conference, held in Toronto on Oct. 25.
“Canadian organizations remain optimistic, but guarded, in the midst of a turbulent global outlook and higher-than-normal economic risk,” said Karla Thorpe, director, leadership and human resources research with the Conference Board. “As confidence in the global economy continues to weaken, employers and employees watch anxiously in the hopes that Canada can weather the storm.”
The projected 2012 increase is higher than the actual average gains in both 2010 (2.7%) and 2011 (3%); however, salary increases have not yet returned to pre-recession levels. In 2008, salary increases averaged 4.2%.
Saskatchewan is projected to have the highest increases at 3.9%, followed by Alberta at 3.6%. Ontario and Atlantic Canada predict the lowest base pay increases at 2.7%.
Projected increases are highest in the oil and gas industry at 4.3%, followed by the natural resources industry at 4.1%. The lowest average increases are expected in the retail trade sector, averaging 2.4%.
The average projected increase in base pay among non-unionized employees in the private sector is 3.2%, while non-unionized public sector workers are expected to see increases of 2.6%.
Anticipated wage increases for unionized employees are projected to be 2% in 2012—1.5% in the public sector and 2.3% in the private sector.