Salaries for non-unionized Canadian workers will continue to rise faster than the rate of inflation in 2003, not-for-profit think tank the Conference Board said Thursday.
The Ottawa-based organization expects salaries to increase an average of 3.5 per cent next year, a full percentage point more than the 2.5 per cent increase expected in the inflation rate.
If the forecast holds true, it will mark the eighth time in a row that pay increases have outstripped price gains for consumer goods.
Driving the higher salaries is greater demand for skilled workers, the board said.
"Strong economic conditions, coupled with the effects of an aging work force, are setting the stage for increased competition for talent in Canada's labour market," Prem Benimadhu, director of the Conference Board's compensation research centre, said in a statement.
Non-unionized public sector workers will average a four per cent raise, while non-unionized private sector workers will get about 3.4 per cent.
Unionized workers in both sectors are expected to get an average of 2.7 per cent.
"Senior executives will again lead all employee groups with an average 3.9 per cent increase, followed by other executives at 3.8 per cent," the report said.
The biggest pay increases are expected in the transportation and utilities industries, with wage gains of 4.4 per cent, followed by chemicals and pharmaceuticals, communications, and oil and gas.
Lower-than-average pay raises are expected in the retail, natural resources and financial services sectors.
By province, Alberta is forecast to lead the pack thanks to its huge oil and gas industry, with an average increase of 4.2 per cent.
The Atlantic provinces will see increases of 4.1 per cent. Manitoba and Saskatchewan will post 3.9 per cent increases, while Ontario will be on par with the average at 3.5 per cent.
The weak regions are expected to be B.C. and Quebec, with increases of 3.1 per cent and 2.9 per cent, respectively.
The report was based on responses from 331 organizations that were surveyed between August and September.
The Ottawa-based organization expects salaries to increase an average of 3.5 per cent next year, a full percentage point more than the 2.5 per cent increase expected in the inflation rate.
If the forecast holds true, it will mark the eighth time in a row that pay increases have outstripped price gains for consumer goods.
Driving the higher salaries is greater demand for skilled workers, the board said.
"Strong economic conditions, coupled with the effects of an aging work force, are setting the stage for increased competition for talent in Canada's labour market," Prem Benimadhu, director of the Conference Board's compensation research centre, said in a statement.
Non-unionized public sector workers will average a four per cent raise, while non-unionized private sector workers will get about 3.4 per cent.
Unionized workers in both sectors are expected to get an average of 2.7 per cent.
"Senior executives will again lead all employee groups with an average 3.9 per cent increase, followed by other executives at 3.8 per cent," the report said.
The biggest pay increases are expected in the transportation and utilities industries, with wage gains of 4.4 per cent, followed by chemicals and pharmaceuticals, communications, and oil and gas.
Lower-than-average pay raises are expected in the retail, natural resources and financial services sectors.
By province, Alberta is forecast to lead the pack thanks to its huge oil and gas industry, with an average increase of 4.2 per cent.
The Atlantic provinces will see increases of 4.1 per cent. Manitoba and Saskatchewan will post 3.9 per cent increases, while Ontario will be on par with the average at 3.5 per cent.
The weak regions are expected to be B.C. and Quebec, with increases of 3.1 per cent and 2.9 per cent, respectively.
The report was based on responses from 331 organizations that were surveyed between August and September.
