Wages are edging lower for new hires across the country, fresh data shows, as the resource downturn ripples into hourly compensation levels throughout Canada’s job market. And there’s more pressure to come, experts say.
The national average of per-hour pay dropped 3.15 per cent between January of last year and last fall, to $18.45, Statistics Canada said Thursday.
The wage declines were most pronounced in provinces hit hardest by a plunge in oil and other commodity prices. Average pay dropped 5 per cent in Alberta, and declined a full 9 per cent in Saskatchewan as oil prices spiraled lower throughout last year.
But even in economically healthier regions such as British Columbia wages fell throughout 2015 – a year which saw a mild recession take hold through the first six months of the year.
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No let-up
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Pressure on worker wages isn’t likely to ease this year, either. Deepening declines in the price of oil – which was nearing $26 a barrel on Thursday – is casting a long shadow on income prospects across the country.
“Slashed oil patch revenues are still affecting the energy sector along with supporting industries,” Heather McAteer, an economist at the Conference Board of Canada said.
The Ottawa-based researcher said Friday – perhaps optimistically – that private-sector wages are expected to rise 2.1 per cent this year, down from a previous estimate of 2.5 per cent made last summer. Average pay in the oil-and-gas sector is expected to nudge higher by just 0.5 per cent.
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Projected increases in pay actually rose for two industry sectors, the Conference Board report said: transportation and manufacturing. Factory salaries are perhaps poised to benefit from a long-awaited boost from the lower Canadian dollar, which appears to finally be helping Canadian factories win more business from U.S. and foreign customers.
“All remaining industries have adjusted salary projections downward since the summer, with the exception of the finance, insurance and real estate industry,” the report said.
Here’s a look at the average hourly rate by province:
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