New ADP data reveals a persistent pay gap between workers who stay and those who switch employers in Canada's private sector
Canadian private sector workers who stayed in their jobs in August 2026 saw base pay rise 3.0% year-over-year, while those who switched employers earned 5.6% more, according to the August 2026 ADP Canada Pay Insights report.
The data, drawn from the anonymized payroll records of approximately 1.6 million Canadian workers each month, underscores a pay gap that continues to reward mobility – a dynamic financial advisors and wealth managers should factor into client conversations about income planning and financial resilience.
The report also tracked gross pay, which includes bonuses and tips alongside base wages. On that broader measure, job-stayers saw gains of 4.4%, while job-changers recorded increases of 9.6% – pointing to a meaningful difference in total compensation for those willing to move.
What the sector breakdown shows
Wage growth was notably consistent across most industries, with little differentiation between goods-producing and service-providing sectors.
Among job-stayers, base pay rose 3.0% in natural resources and mining, construction, trade, transportation and utilities, information, financial activities, leisure and hospitality, and other services. Education and health services led the service-providing sectors at 3.3%, followed by professional and business services and manufacturing, both at 3.2%.
Wealth management professionals can draw on recent coverage of Canadian compensation trends on Wealth Professional to contextualise how these wage dynamics are affecting client households.
Regional differences worth watching
Provincial variation in base pay growth for job-stayers was limited but present.
Nova Scotia posted the strongest gain at 3.7%, followed by New Brunswick at 3.5% and Prince Edward Island at 4.2% – the only province to clear 4.0%. Yukon was the outlier on the low end, at 2.5%. Ontario, Alberta, British Columbia, Manitoba, Saskatchewan, Newfoundland and Labrador, and Quebec all recorded base pay growth of exactly 3.0%.
The Atlantic provinces' relatively stronger showing may reflect tighter local labour markets, but advisors in those regions should note that real purchasing power gains remain modest when measured against broader cost-of-living pressures.
Firm size produced no meaningful distinction: base pay for job-stayers grew 3.0% regardless of whether the employer had one to 199 employees, 200 to 499, or 500 or more.
Younger workers are out-earning their seniors
Age-based breakdowns in the report reveal that workers between 25 and 34 recorded the strongest base pay growth among job-stayers, at 3.6%. Those aged 15 to 24 saw gains of 3.1%, while the 35 to 54 cohort tracked at 3.0%.
Workers aged 55 to 85 – many approaching or in the early stages of decumulation – recorded the weakest gains at 2.8%. That gap matters for advisors with clients in the pre-retirement age range who may be relying on continued salary growth to bolster savings in their final working years.
Coverage of how pay gaps are shaping Canadian workforce decisions has been a consistent theme for Wealth Professional readers managing clients across income levels.
The job-change premium remains significant
The 2.6 percentage point spread between base pay growth for job-changers (5.6%) and job-stayers (3.0%) is a figure worth keeping in mind when clients ask about the financial case for switching employers.
On a gross pay basis, that spread widens considerably – 9.6% versus 4.4%. While not every career move delivers immediate income gains, the ADP data suggests that, at a national level, voluntary job changes continue to produce a meaningful pay premium in Canada's private sector.
This aligns with broader compensation survey data from consulting firms such as Normandin Beaudry, which has tracked the downward trend in Canadian salary budgets for 2026, projecting average base salary increases of approximately 3.0% for non-unionized employees. In that context, job-changers are securing significantly more than employer-set budgets would suggest is possible simply by remaining in place.
