August 26, 2014
Salary increases to average 2.6 per cent in 2015
Toronto, ON– Canadian employees can expect to see average base salary increases of 2.6 per cent in 2015, says a national survey of over 400 Canadian public and private sector employers conducted by Hay Group in June and July. Participants include many of Canada's leading employers.
The 2.6 per cent projected increase is the same as that in 2014, and lower than the 2.9 per cent projection for 2013. Canadian projections have now fallen further behind the U.S. where American workers can expect an average increase of three per cent in 2015, up from 2.8 per cent projected for 2014.
Projected base salary increases for Canadian workers continue to be much lower than those of 3.7 per cent before the 2008/09 economic downturn. U.S. projections were also considerably higher at that time.
According to the survey, 83 per cent of Canadian employers will provide their employees with base salary increases in 2015.
Resource-based provinces continue to lead the rest of Canada
The highest increases continue to be seen in the oil and gas sector at 3.8 per cent where demand for key skills continues to outweigh the strategic supply challenges that persist in the industry. Chemicals (3.3 per cent), credit unions (3.2 per cent), and financial services (three per cent) are all sectors with forecasts considerably higher than the national average of 2.6 per cent. These high forecasts are also a continued reflection of the demand for key skills and experience.
Alberta (3.1 per cent) and Saskatchewan (2.9 per cent) will lead the country with projected overall base salary increases higher than the national average, these are again buoyed by the demand for key skills in the resource industries despite the economic challenges in other sectors in these provinces. All other provinces are predicting increases of 2.1 to 2.6 per cent, which are at or below the national average.