Despite signs of a possible recession, Canadian workers are forecast to receive an average salary increase of 3.6 per cent in 2024, according to a new survey by Normandin Beaudry.
The Canadian financial management consulting firm released the results of its annual salary increase survey on Tuesday.
Out of more than 700 organizations surveyed, it found that employers are expected to increase the wages of their workers by 3.6 per cent on average in 2024, excluding salary freezes.
Only two per cent of companies are predicting salary freezes for next year, a comparable decrease from the pre-pandemic wage freezes that averaged three to five per cent, the consulting firm notes.
Forty-three per cent surveyed say they plan to grant an additional average salary budget of one per cent.
However, companies are still showing signs of caution as wage increases in 2023 were slightly below the projected increase, as the average salary increase for non-unionized employees in 2023 was projected at 4.2 per cent versus the actual 4.1 per cent reported, the survey notes.
There are still various economic challenges that could impact Canadian organization in 2024 including risks of a recession, Canada’s rising unemployment rate, labour shortages and interest rates remaining high despite inflation rates slowing down in June.
The sectors that are likely to see increases above the national average and up to 3.9 per cent include workers in the STEM sector, real estate, manufacturing and accommodation and food services.
The provinces and territories that are projected to have salary increases that are above or equal to the national average increase in 2024 include Quebec at 3.7 per cent, as well as Yukon, Ontario and British Columbia at 3.6 per cent.
The rest of the provinces and territories are expected to see a slightly below national average wage increase, with workers in the Northwest Territories, Saskatchewan and Prince Edward Island forecast to receive average salary increases of 3.3 per cent.