Report looks at salary increases in Canada
October 25, 2012
A new report issued by the Conference Board of Canada found that the expected increase in salary for non-unionized employees will be three percent. The report, titled the Compensation Planning Outlook for 2012, summarizes the findings it collects through an annual survey.
"Employers have not yet felt the full effects of looming workforce shortages. But it is apparent that the labor market is tightening, especially in Western Canada and in the natural resources and professional, scientific, and technical services industries," said Karla Thorpe, director of Leadership and Human Resources Research. "Assuming no significant hiccups to the global economy, the unemployment rate is expected to dip in 2014, and labor supply shortages will re-emerge over the medium term."
The survey also found that 69 percent of organizations say that they have been having a tough time attracting and keeping necessary personnel. The labor market in Saskatchewan and Alberta are is seeing the most problems. The report showed 84 percent and 83 percent, respectively, were having issues retaining employees. This is happening the most in the nature resources sector, where nearly all of those who responded said they were having difficulty keeping and finding employees.
The industry that is expected to see the highest increase in salary for their existing employees is the oil and gas industry at 4.2 percent. The natural resource industry, not including oil and gas, is right behind with a 3.6 percent increase.
The report also showed that unionized employees will have average wage boosts of 2 percent, which is still slightly below the increase of contracts made in 2012.