Lower salary projections to continue into next year

Gains of 2.2 per cent predicted, down from 2.4 per cent in 2016
|hrreporter.com|Last Updated: 09/08/2016

Canadians can expect to see average base salary increases of 2.2 per cent in 2017, according to a survey of almost 700 Canadian public and private sector employers by Korn Ferry Hay Group in June and July.

The 2.2 per cent projection is lower than the 2.4 per cent projection for 2016 and 2.6 per cent for 2015, continuing a downward that has developed since the start of the economic downturn in 2008/2009, said the group.

However, U.S. salary projections remain the same as for 2016 (three per cent).

Sixty-five per cent of Canadian employers are forecasting they will provide employees with base salary increases in 2017, which is considerably less than the 70 per cent number for 2016. This is due to continued economic uncertainty across many sectors in the Canadian economy and to the fact that more employers are now adopting a "wait and see" position before increasing their budgets, said Korn Ferry.

Resource-based provinces

With the economic impact of collapsing oil prices and natural disasters hitting the Fort McMurray area, energy workers are now projected to receive the lowest increases in the country at 1.5 per cent. 

Alberta, followed by Newfoundland and Labrador, are the provinces forecasting the lowest increases.

Province

2017 projection

2016 projection

2015 projection

2014 projection

2013 projection

2012 projection

B.C.

2.3 per cent

2.3 per cent

2.6 per cent

2.3 per cent

2.7 per cent

2.5 per cent

Alberta

1.3 per cent

2.5 per cent

3.1 per cent

3.2 per cent

3.6 per cent

3.4 per cent

Saskatchewan

2.2 per cent

2.7 per cent

2.9 per cent

3.4 per cent

3.2 per cent

3.2 per cent

Manitoba

2.4 per cent

2.5 per cent

2.3 per cent

2.6 per cent

2.7 per cent

2.5 per cent

Ontario

2.3 per cent

2.5 per cent

2.5 per cent

2.5 per cent

2.7 per cent

2.7 per cent

Quebec

2.5 per cent

2.5 per cent

2.6 per cent

2.6 per cent

2.7 per cent

2.8 per cent

Maritimes

1.9 per cent

1.9 per cent

2.1 per cent

2.1 per cent

2.6 per cent

2.4 per cent

Newfoundland

1.4 per cent

2.3 per cent

2.6 per cent

4.0 per cent

3.4 per cent

3.4 per cent

GTA

2.4 per cent

2.5 per cent

2.5 per cent

2.5 per cent

2.8 per cent

2.7 per cent

Looking at major Canadian cities, workers inMontreal (2.5 per cent),Vancouver (2.4 per cent) andWinnipeg (2.4 per cent) can anticipate above average increases while those inCalgary (1.2 per cent),Edmonton (1.5 per cent) andSt. John's (1.5 per cent) will have to wait for better times.

By sector, pharmaceuticals (2.7 per cent), insurance, high technology and finance (all at 2.6 per cent) will provide the highest base salary increases to their employees.

Add Comment

  • *
  • *
  • *
  • *