Average salary increases forecast to be highest in 2013
Oct 26, 2012
The Conference Board of Canada’s Compensation Planning Outlook 2013, released Wednesday, is forecasting the province to have the highest average salary increases next year.
According to the survey, 69 per cent of organizations in Canada report challenges with recruiting and/or retaining personnel. The top professions in demand include engineering, specialist information technology, and skilled trades. “Labour market pressure is most acute in Saskatchewan and Alberta, where 83 and 82 per cent, respectively, of employers face challenges recruiting and retaining employees,” said the report. “The pressure is greatest in the natural resources sector, where virtually all firms responding to the survey are facing challenges recruiting and retaining employees.
“Given talent shortages in resource industries, it is not surprising that employers in Alberta and Saskatchewan are again expecting to offer the highest base pay raises, (salary increases averaged 3.9 per cent in Alberta and Saskatchewan last year). Alberta employers are projecting average increases of 3.8 per cent, slightly higher than the 3.7 per cent average in Saskatchewan. The lowest average increase is expected in Ontario at 2.7 per cent.”
The report said the oil and gas industry is projecting the highest average increase at 4.2 per cent in 2013, followed by the natural resources sector (excluding oil and gas) at 3.6 per cent. At the national level, the report said a sluggish economic outlook is causing organizations to plan for another year of moderate base salary increases for 2013. Average increases for non-unionized employees are forecast for three per cent next year, largely in line with actual gains in 2012.
“Employers have not yet felt the full effects of looming workforce shortages. But it is apparent that the labour market is tightening, especially in Western Canada and in the natural resources and professional, scientific, and technical services industries,” said Karla Thorpe, Director, Leadership and Human Resources Research for the board. “Assuming no significant hiccups to the global economy, the unemployment rate is expected to dip in 2014, and labour supply shortages will re-emerge over the medium term.”