Wage growth in high-skill industries continues to outpace that in lower-skill ones. Fast wage growth in management and finance sectors has driven the widening wage gap.
Labour market participation rates are expected to decline modestly this year. This trend is forecast to continue in the medium term.
Real wage growth is forecast to accelerate this year, towards historic norms. This will put greater pressure on firms’ wage bills.
President, Hays Canada
Predictions of 1.8% growth for 2018 indicate steady continued growth for Canada. Ongoing trade negotiations are creating uncertainty for many sectors that rely on the import/export market, while mercurial housing markets in most major centres are a cause for concern for many Canadian workers. Pay rates have remained largely stagnant since the 2015 oil and gas downturn, but growing demand for talent and low unemployment is driving wages up, with average pay growth reaching a six-year high in April 2018. High wage pressure is already affecting high-skill, talent-short sectors, such as construction, technology and finance.
Rowan O’Grady, President, Hays Canada
Unemployment in Canada has fallen to a 40-year low, as the economy continues to charge ahead. GDP rose by around 3% in 2017, faster than any other country in the G7. With strong demand for labour, average pay growth reached a six-year high in April 2018.
However, forecasters predict both GDP and employment growth will slow across the remainder of the year, with unemployment rising to some extent as job creation weakens.
Over the longer term to 2030, Canada is expected to see faster population growth than other G7 countries and much of Europe, helping to ensure a supply of skilled labour for years to come.