Salary increases aren’t keeping up with inflation.
Economic risks paired with an exceptionally tight labour market have moulded a challenging scenario for Canadian employers as they develop their compensation and retention strategies for the upcoming fiscal year. The results from this year’s Compensation Planning Outlook report provide insight into how organizations are planning to increase base pay and incentives in the upcoming year. Further, the findings show how regional pay rates are being calculated now that hybrid and remote work models are the “new norm” and explore which groups should anticipate salary freezes in 2023. In addition, data from our HR Trends and Metrics research provides further context for organizations struggling to attract and retain talent.
Labour markets are stretched tight, but a ramp-up in immigration and easing business and consumer confidence will provide some relief for the market.
Following a solid rebound over the past year, Canada’s economic growth is forecast to slow over coming quarters. High inflation and rising interest rates are eating away at household incomes—a key driver of recent growth. As a result, Canada's chance of a recession is down to a coin flip. However, our high commodity prices, high job vacancies and socked-away savings will likely help Canada avert an economic decline.
View our webinar to learn more from the Conference Board of Canada’s presentation and discussion about how global and domestic pressures are affecting Canada’s national economy and labour market outlook.