News in Brief

Many Canadians living pay to pay, not saving enough: Survey

TORONTO — Many Canadians continue to live pay cheque to pay cheque and are not saving enough for emergencies or retirement, according to a recent survey by the Canadian Payroll Association (CPA).

The survey of close to 3,600 employees from across Canada found that 48 per cent of those polled said they would have difficulty meeting their financial obligations if their pay cheque was delayed by a single week. The CPA says this percentage is close to the average of 47 per cent over the past three years.

Twenty-four per cent of those surveyed said they probably could not come up with $2,000 if an emergency arose within the next month. The parts of the country with the highest percentage of employees living pay cheque to pay cheque are Ontario (52 per cent), British Columbia (51 per cent) and Atlantic Canada (50 per cent), the survey found.

When it comes to saving for retirement, 76 per cent said they have put aside less than a quarter of what they will need. Forty-eight per cent of those 50 years old and up said they were less than a quarter of the way to their retirement savings goal.

The survey also found that 35 per cent of respondents expect to work longer than they had originally planned five years ago, with their average target retirement age rising from 58 to 63 over that period. Thirty-five per cent said they need to work longer than planned because they had not saved enough money to retire.

While more employees said they are trying to save more (71 per cent compared with an average of 66 per cent over the previous three years), fewer are actually able to do so (62 per cent compared to an average of 66 per cent over the past three years).

It also found that many employees do not expect their financial situation to get better any time soon. Only 33 per cent said they expect the economy to improve over the next year, while 27 per cent think it will get worse. In addition, 36 per cent of those surveyed said they feel overwhelmed by their level of debt and 12 per cent said they are not sure they will ever be debt-free.

In light of the findings, the CPA said there are things payroll departments can do to assist employees in better saving for emergencies or retirement.

"Payroll professionals can help by setting up automatic deductions from an employee’s pay cheque to a savings plan or retirement program. This is the most effective way to save for employees, so they can get on the path to a more secure financial future," said CPA board chair Edna Stack in a news release.


Average assessment rate in Nova Scotia will not change in 2016, WCB says

HALIFAX — The average employer assessment rate for workers’ compensation coverage in Nova Scotia will remain $2.65 per $100 of assessable payroll, the province’s Workers’ Compensation Board recently announced.

Despite this, the board says most employers will see their individual rates rise or fall, based on their industry and company claims experience. Rates will go down in industries such as fishing, aquaculture, commercial construction and dry bulk and bulk liquids trucking, while they will rise in industries such as residential construction, offshore oil and gas, and plastics manufacturing.

The board says it is holding the line on average assessments as it works to implement a new plan for preventing injuries, getting injured workers back on the job and providing better service to employers and workers.


WSIB to increase earnings ceiling in 2016, but not premium rates

TORONTO — The maximum insurable earnings ceiling for workers’ compensation in Ontario will rise from $85,200 to $88,000 in 2016, the Workplace Safety and Insurance Board (WSIB) recently announced.

The board says increases to the earnings ceiling are directly linked to changes in average earnings in Ontario as measured by Statistics Canada, and provisions under the Workplace Safety and Insurance Act.

The board also announced it would not raise employer premium rates in 2016.

"Our board of directors’ decision to keep rates at current levels was made based on careful actuarial and financial analysis. It provides stability for employers as the WSIB reviews its rate-setting methodologies in consultation with stakeholders to come up with the fairest and most effective solutions," WSIB chair Elizabeth Witmer said.

The WSIB is proposing a new rate-setting framework that would change the way it classifies employers and sets premium rates. It would also eliminate the board’s experience rating programs. During the spring and summer, the WSIB held information sessions with employers and workers to explain the new framework. It gave stakeholders until early October to submit their feedback.


Unemployment rate rose to 7 per cent in August: StatsCan

OTTAWA — Canada’s economy gained about 12,000 jobs in August, but the unemployment rate rose from 6.8 per cent to seven per cent, Statistics Canada reports. It attributes the rate increase to more people searching for work.

Compared with 12 months earlier, the agency reports that employment increased by 193,000 or 1.1 per cent. Over that period, full-time work increased by 318,000, but part-time employment decreased by 125,000.

Industries where employment increased included public administration and educational services. Employment was down slightly in industries such as transportation and warehousing and information, culture and recreation.

On a provincial basis, Newfoundland and Labrador continued to have the highest unemployment rate at 11.5 per cent, down from 11.9 per cent in the previous month. The unemployment rate also went down in New Brunswick (from 11 per cent to 10.1 per cent), P.E.I. (from 11.6 per cent to 10.8 per cent) and Saskatchewan (from 5.2 per cent to 4.7 per cent). Saskatchewan continued to have the lowest unemployment rate.

The unemployment rate went up in Manitoba (from 5.6 per cent to 5.7 per cent), Nova Scotia (from 8.1 per cent to 8.4 per cent), Ontario (from 6.4 per cent to 6.8 per cent) and Quebec (from 7.7 per cent to 8.0 per cent). The rate was unchanged in Alberta and British Columbia at six per cent.

The U.S. Bureau of Labor Statistics reports the American economy added 173,000 jobs in August and the unemployment rate decreased from 5.3 per cent to 5.1 per cent.


Average weekly earnings up in June: StatsCan

OTTAWA — Average weekly earnings of non-farm payroll employees were $955 in June, up from $947.00 in May, Statistics Canada reports. Statistics Canada revised the May numbers from the previously reported $948.

On a year-over-year basis, weekly earnings increased 1.9 per cent in June. The increase in weekly earnings during the 12 months to June reflected a number of factors, including wage growth, changes in the composition of employment by industry, occupation and level of job experience, as well as average hours worked per week. Non-farm payroll employees worked an average of 33 hours a week in June, unchanged from May and little changed from the average a year earlier.

Year-over-year earnings of non-farm payroll employees increased in eight provinces in June, with the biggest growth in Prince Edward Island. Earnings were virtually unchanged in Alberta and Saskatchewan.