The continuing labour shortage in Canada has resulted in an increase in wages for many workers. While there is hope that the talent shortage will ease shortly, employers across the country are projecting future salary bumps into their budgets.
According to a survey of over 17,000 businesses across the country, 45% of the businesses expect to increase wages by an average of 8.1%. The Canadian Chamber of Commerce carried out this survey earlier this year.
Based on the ongoing worker shortage, Canadian Visa Professionals reported that immigrants can more easily secure valuable jobs in Canada.
Companies in Canada and Employees' Salaries
Employers are doing all they can to attract employees as there are many available jobs in Canada’s labour market, but a low number of people to do them.
The baseline salaries for employees at ElissDon, a Mississauga-based construction firm, have increased greatly in the past year to match inflation. Despite the raise in salary presently, the company is projecting a similar increase in 2023.
The company’s vice president for people and culture, Paul Trudel, stated that the rise in baseline salaries prevented existing employees from leaving the company for other employers.
From a survey, the average per capita pay in the year’s first six months had increased by 4%. Canadian Visa Professionals stated that the sectors with the biggest increases are manufacturing, life sciences and tech firms.
Budgets of Canadian Employers in 2023
According to a report by Mercer, a global consulting and data analytics firm, employers in Canada had budgeted 3.4% for merit-based salaries and 3.9% for total compensation increases for their budgets next year.