Compensation Planning Outlook 2001

As the new millennium unfolds, Canadian employees can again expect a healthy increase in real wages.

Document Highlights

With inflation forecast almost two percentage points behind at 1.8 per cent and tax cuts expected for 2001, Canadian employees are well positioned for a solid increase in their take-home pay.

Wage increases will vary by industry, region and employee group:

• The high technology sector projects the highest increases at an average of 4.6 per cent, reflecting this sector’s ongoing labour shortage in the midst of unprecedented industry growth.
• Expected increases are highest among organizations in Ontario at an average of 3.8 per cent, followed by Quebec and the Prairie provinces with projections averaging 3.5 per cent each.
• Senior executives will continue to see the highest projected increases at 4 per cent, with the average for other executives projected at 3.8 per cent.