Employers in Canada expecting salaries to increase 2.3 percent in 2018
This is up from the actual 2.2 percent average increase in 2017. The forecast for 2018 includes expected salary freezes and excludes promotional or special salary adjustments.
The expected 2.3 percent increase compares favourably to the current rate of inflation, which is about 1.0 percent.
The survey identified some industry sectors that are expecting higher than average salary increases in 2018. They include utilities at 2.9 percent, and manufacturing and wholesale trade at 2.7 percent.
These industries may be catching up after lower than average increases over the past few years. Expected salary increases in sectors such as finance and insurance are expected to remain strong at 2.7 percent next year.
Lower than average increases are expected in certain industry groups that face more uncertain economic circumstances.
This includes mining and oil and gas extraction where average salary increases of 0.8 percent are expected. Salary increases in the public sector are also expected to be below average.
Salary increases in public administration, health care and social assistance employers are expected to average 1.7 percent next year, with educational services slightly higher at 1.9 percent.
Reflecting the different mix of industries by province, Alberta and Prince Edward Island are expected to have the lowest salary increases next year, at 1.8 and 1.9 percent respectively.
Quebec is expecting the highest salary increases next year, at 2.6 percent. Salary increases in other provinces will be close to the norm. ■