There are a number of surveys that come out near the fall/end of year, to estimate salary trends. This is just one, but gives an indicator of where things are going…
Employers in Canada are expecting base salaries to rise by an average of 2.7 per cent in 2020, says Morneau Shepell’s 2020 ‘Salary Projection Survey.’ This is an increase from the actual 2.6 per cent average increase in 2019. The forecast includes increases in salary structure, length of service, cost of living and merit pay, and excludes salary freezes and promotional adjustments. The expected 2.7 per cent increase is higher than the projected rate of inflation for the year. In July, the Bank of Canada noted that consumer price index inflation is expected to rise to about two per cent by the end of 2020. When looking at economic growth, the Bank of Canada projects the Canadian economy will grow by just 1.4 per cent in 2019. “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,” says Anand Parsan, vice-president, compensation consulting practice. “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.”