Posthaste: The Canadian economy is riddled with risks — but your employers are still planning to give you a hefty raise
The mood of Canadian employers seems to be at odd with overall business sentiment. While the likes of the World Trade Organization and Deloitte issuing warnings of trouble ahead for the global and domestic economies, Canadian employers are preparing to give their hardworking employees even bigger raises next year.
Canadians can expect their average salaries to rise 2.7 per cent next year, according to a new survey by human resource firm Morneau Shepell, improving on last year’s 2.6 per cent increase in salaries.
Employers in professional, scientific and technical services, public administration and construction expect to hand out the biggest salary bumps of around 3 per cent, while at the stingier end of the spectrum, companies in education, agriculture and forestry, and arts and entertainment are gearing up for salary increases of just under 2.4 per cent for their employees.
“While the Canadian economy is projected to see slowed growth in the coming year, we’re expecting to see continued wage increases as a result of the tightening labour market,” said Anand Parsan, vice president, compensation consulting practice at Morneau Shepell. “Employers are optimistic about the anticipated growth in 2020. We have seen a steady rise in projected base salary increases over the past few years, with actual numbers equal to or above our forecast since 2017.”
Employers in British Columbia are expecting salary increases of 2.8 per cent, while companies in Alberta, Ontario and Quebec expect salaries to increase 2.7 per cent. Employers in Newfoundland and Labrador are expecting the highest annual salary increases at 3.1 per cent, led by rising oil production and mining in the province.
U.S. stock index futures gained on Tuesday ahead of the release of manufacturing data as investors looked for fresh signs of domestic demand in the world’s largest economy amid softening global growth, Reuters reports. In Canada, market sentiment may be determined by Canadian monthly GDP, which is expected to rise a modest 0.1 per cent.
“The expected modest advance in July GDP points to slower 1.4% annualized growth in Q3 after Q2’s 3.7% spike, in line with the BoC’s call (1.5%) in the July MPR,” writes Sal Guatieri, senior economist at BMO Capital Markets.
Here’s what’s you need to know this morning:
Statistics Canada reports gross domestic product by industry for July at 8:30 a.m. ET
Canada Manufacturing Technology Show in Toronto
Premier Jason Kenney speech to Calgary Chamber of Commerce on Alberta economy at 12:15 p.m. MT in Calgary
Public Interest Alberta to release new data on minimum wage freeze in Edmonton
In Saskatoon, eight food and agriculture entrepreneurs from five provinces across Canada are coming to Saskatoon October 1 and 2 to convince industry investors that their enterprises are worthy of US$1.25 million to help them grow and flourish
Disclosure application hearing for Huawei executive Meng Wanzhou’s case in Vancouver
Northwest Territories election
More than a third of Canadians have no retirement savings, and one-half live paycheque to paycheque, a new poll by accounting firm BDO Canada has found. Indeed, debt is overwhelming one quarter of the respondents. One-third of them can’t afford to pay off their credit cards, and the number of cardholders has increased in one year to 57 per cent from 53 per cent. Forty per cent owe more than $20,000 on non-mortgage debt.
And gen-Xers are more indebted than are millennials and baby boomers, and 38 per cent of the cohort have no retirement savings. One alarming result to come from the poll was that 69 per cent of the respondents say they won’t have enough savings to last through retirement.