Salary to rise in 2023 and a record number of job vacancies in 2022

Salary to rise in 2023 and a record number of job vacancies in 2022

Canadian businesses expect the national average salary to rise 4.2% next year. The new survey from Eckler found Ontario, Quebec, and British Columbia can expect the most significant salary increases. In comparison, those in the technology sector expect a 5.4% increase. This comes as companies work to balance a tight labour market driving up salaries to attract applicants and inflation hitting their bottom line. 

The report forecast comes as organizations try to balance inflationary pressures, surging interest rates, recession risks and a tight labour market.

British Columbia, Ontario and Quebec are projecting the highest average salary increases, with the Yukon, Nunavut and Prince Edward Island projecting the lowest.

The largest average salary increases are expected to be in the technology sector at 5.4 percent.

The smallest increases are expected in the education, health care, agriculture and hospitality sectors.

The survey results also show that Canadian organizations are planning to use compensation as a crucial part of their talent management strategy, with just one percent of organizations reporting a planned salary freeze for 2023.

Additionally, 44 percent of organizations remain undecided about salary budgets for 2023.

Meanwhile, from the workforce perspective, Statistics Canada found that the second quarter of 2022 saw a record number of job vacancies employers were looking to fill 997,000 in the quarter, a 47% climb from Q1 and a 42.3% spike from the same time last year. Vacancies are highest in the healthcare sector, up nearly 29% compared to the previous year, while the service, accommodation and food services sectors also reported high vacancies. 

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