2.6% salary bump for Canadian employees in 2015
Hay Group says wage growth post 2008/09 continues to trail the US.
TORONTO — Canadian employees can expect average base salary increases of 2.6% in 2015, according to a national survey of over 400 Canadian public and private sector employers conducted by the Hay Group.
The global management-consulting firm (with offices in Toronto) said the survey in June and July included many of Canada’s leading employers.
The 2015 increase matches 2014 but it’s lower than the 2.9% projection for 2013. And Canadian projections have fallen further behind the US where the Hay Group says workers can expect an average increase of 3% in 2015, up from 2.8% projected for 2014.
Projected base salary increases for Canadian workers continue to be much lower than the 3.7% reported before the 2008/09 economic downturn. US projections were also considerably higher.
According to the survey, 83% of Canadian employers will provide base salary increases in 2015, with the highest increases in the oil and gas sector at 3.8% where the Hay Group says demand for key skills continues to outweigh strategic supply challenges.
Other industries forecasting higher increases are chemicals (3.3%), credit unions (3.2%), and financial services (3%). Manufacturing, all jobs including union, is above the average at 2.7%. Union employees only are under at 2.3%.
Alberta (3.1%) and Saskatchewan (2.9%) lead the provinces, buoyed by the demand for key skills in the resource industries.
Of the other provinces, BC projects 2.6%, Manitoba 2.3%, Ontario 2.5%, Quebec 2.6%, the Atlantic provinces 2.1%, and Newfoundland 2.6%.
Of the cities, workers in Calgary (3.2%), St. John’s (3.1%) and Saskatoon (3%) will see the highest salary increases, compared to the Greater Toronto Area at 2.5%.
Looking at the 2015 projections for major Canadian cities, workers in Calgary (3.2%), St. John’s (3.1%) and Saskatoon (3%) will see the highest salary increases.
Projections by job level show that most positions will be at or just above the national average of 2.6%. Only unionized clerical positions will see average increases (2.3%) which are below the national average.
The UK (2.5%), Canada (2.6%), US and Australia (3%) continue to lag India (10.7%) and China (8.2%). China’s 2014 forecast was 9%.