Shift was identified in 2024 but is set to repeat in 2025
With millions of Canadians struggling to keep on top of the rising cost of living, a new report suggests there was relief for some workers in major areas last year.
The Conference Board of Canada’s analysis reveals that wages rose by an average 3% in 2024, outpacing the 2.4% rate of inflation. While some will of course have done better than others, the report shows that those working in manufacturing, primary industries, and entertainment and hospitality saw the largest increases.
However, those working in information and culture as well as education, health, and social services experienced the lowest wage increases last year.
Wage hikes were also not uniform across Canada of course, with those in Quebec and British Columbia seeing the biggest boost to their pay cheques while those in Alberta and Nova Scotia were more likely to see lower wage rises.
Last year was dogged by strikes with 2.3 million person-days lost. There are 143 collective agreements set to expire this year, which could prove pivotal in the labour market as key sectors including education, health, social services, public administration and transportation face negotiations.
Canada added 7,400 jobs in April, a statistically insignificant addition accompanied by a decline of 0.1 percentage points in the employment rate to 60.8% and an increase of the unemployment rate by 0.2 percentage points to 6.9%.
And more than half of employed job seekers have worked longer hours or more shifts than usual (58%) and 30% have taken on another job to help balance their household budgets, according to a recent survey.
"Looking ahead, Canada's labour market is expected to face ongoing challenges," Diogo Borba, Senior Research Associate of Human Capital at The Conference Board of Canada. "Wage growth is projected to outpace inflation again in 2025, but a tightening labour market – driven by declining immigration targets and the ongoing retirement of baby boomers – will add to workforce pressures."
