Morneau Shepell published its Human Resources Trends in early August, which reveals that employers anticipate a wage increase of 2.3% on average for 2018.
2.3% wage increase on average for next year is a bit better than the 2.2% of this year. Employers are cautiously optimistic, with four times more counting on better financial results in 2018 than those expecting lower returns. The rate of inflation, meanwhile, is currently around 1%.
Disparities by sector and province
The largest increases are expected in public services (2.9%), manufacturing, wholesale trade, finance and insurance (2.7%). Mining, gas and oil production, however, showed the most pessimistic figures (0.8%), followed closely by public administration, health care and social services (1.7%) and education services (1.9%).
Geographically, businesses in Quebec expect the highest wage increases (2.6%), while employees in Alberta and Prince Edward Island only expect 1.8% and 1.9% respectively.
Wages aligned with priorities
Employers may be hoping that wage increases will help them achieve their main goals. Two thirds expect to make employee engagement a priority next year, and 56% want to attract and retain employees with the right skills.