Slow Economic Growth Predicted for Canada in 2017

While it may be the 150^th anniversary of the confederation of Canada, 2017 is looking like a year of “cautious salary increases” and “slow economic growth” according to the Conference Board of Canada.

"The economic growth we saw in the first quarter of 2016 quickly tapered off and the energy sector has been hit particularly hard. While conditions are expected to improve, Canadian organizations are being cautious and opting for another year of modest wage increases," said Allison Cowan, director, Compensation Research Centre, The Conference Board of Canada.

And it doesn’t look like the advance planning for all those festivals, events and other sesquicentennial celebrations will have much affect on Canada’s jobs market. For 2016, the Conference Board of Canada estimates that the nation will only have created a “weak” 107,000 jobs national. What’s more, says the agency, this is the worst performance since the 2008-2009 season. Some 58 per cent of surveyed agencies report they are experiencing difficulty recruiting and retaining employees with specific skills, a number that is inline with the 59 per cent of organizations reporting the same challenges last year. The top professions in highest demand include specialist IT, skilled trades, engineering, management, and sales and marketing.

Wages for the coming year, for non-unionized employees, are estimated to hover somewhere around 2.2 per cent nationwide. Workers in the high tech industry should net the best increases, with wages anticipated to grow by about 2.8 per cent. Good news for tourism workers, employees in the food and beverage fields should also see some of the highest increases in the country, with wages projected to jump by 2.7 per cent. Finance, insurance, real estate and the tobacco industry are also expected to see wages increase by 2.7 per cent.

Workers in the oil and gas sector will continue to feel the affects of the weakened industry, including the recent wildfires in the oil fields, and the subsequent temporary shutdown of oil production. These employees should expect a very modest pay raise by 1.1 per cent. Nearly half (48 per cent) of the oil and gas business surveyed said they are planning to freeze salaries in 2017.

A sad contrast to the years prior to 2015, when workers in the oil and gas sector consistently netted the highest wage increases in the country.

Regionally, the woes of the oil industry are spilling over throughout Alberta, where employees shouldn’t expect to see their paychecks increase by more than 1.4 per cent in the coming year.  In the Atlantic provinces, projected increases are estimated to clock in at just 1.9 per cent.

Workers in Manitoba should see the highest pay raises in the nation, with an average projected increase of 2.7 per cent. In Quebec and British Columbia, salary gains are expected to hit 2.5 per cent, on average, while those in Ontario and Saskatchewan should clock in at about 2.4 per cent..

Salary, wages and economic growth predictions are all detailed in the Conference Board of Canada’s 35th edition of the Compensation Planning Outlook, which 383 about their projected growth.

For more information, visit www.conferenceboard.ca.

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