Canadians’ average salary increase for 2014 is 2.6%
Increases are lower than those projected before 2008/09 downturn.
TORONTO — Canadian employees can expect an average salary increase of 2.6% in 2014, ahead of some industrial economies but behind the US and UK, according to a national survey conducted by Hay Group.
The survey of 500 public and private sector employers in Canada shows the projected increase is lower than 2013’s (at 2.9 %) and continues to be relatively close to projected increases of 2.8% for US employees.
The global consulting firm with offices in Toronto says the projected increases for Canada continue to be much lower than the 3.7 % projected before the 2008/09 economic downturn.
Base salary changes in 2013 were exactly as projected for the industrial (2.9%) and public sectors (2.5%) but lower in the financial sector (2.6% vs. 2.9% forecasted).
The highest increases are in the oil and gas sector at 4% despite the strategic issues in the industry that have caused some moderation in long term investment. Chemicals (3.1%) and utilities (3%) were among other sectors that exceeded the national average. Forestry and paper was among the lowest at 2.1%.
Hay Group says these high forecasts are a continued reflection of the demand for key skills and experience.
Resource-rich provinces were well ahead of others with Newfoundland and Labrador (4%), Saskatchewan (3.4%) and Alberta (3.2%) leading the rest of Canada where increases fall within 2.1% and 2.6%. Ontario shows an average of 2.5%, just behind Quebec at 2.6%.
Canadian projections were above France (2.5%), Italy (2.2%) and Japan (2%), but behind the US (2.8%) and UK (2.9%), and far behind the forecasts for India (10.8%), China (9%) and Russia (8%).
Hay Group says 2014 projections for China and Russia, while still much higher than most economies, have moderated between 0.5% to 1% from those made for 2013, while the projections for India have increased by more than 0.5% over 2013.
The survey results show the opportunity to receive short-term incentives has increased for senior and middle management in the private sector, but there are fewer opportunities for employees at the supervisory and clerical levels.
See how your salary compares to industry averages using the EMC/PLANT salary calculator.