Based on the strength of the Canadian economy and positive prospects for the coming year, employees can expect real wage increases in 2003. By industry, the highest average increases are expected in transportation and utilities. Regionally, Alberta will take the lead. Among employee groups, executives will continue to receive the highest projected increases.
Document Highlights
According to the 21st edition of the ‘Compensation Planning Outlook’, real wage gains are in the offing for 2003. Strong employment growth is expected to continue, GDP growth is forecast at 3.4 per cent, and improved corporate profitability is anticipated. Resulting upward pressure on pay will, however, be tempered by caution in business circles.
Projected increases are highest in the transportation and utilities sectors, with above-average increase also expected in the high-tech industry and government. The public sector will outpace the private sector in pay increases for non-unionized employees. Regionally, Alberta will lead, followed closely by the Atlantic provinces.
Long-term prospects for the economy are favourable, but several structural trends will affect the labour force by 2010. Notably, these are: the ageing of the workforce; a decline in natural population growth due to low fertility rates; and a shortfall in immigration. These trends are already having effects on recruitment and retention practices in Canadian organizations.
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