Multiple organizations across Canada that joined the Normandin Beaudry pulse survey are projecting significant salary increases this year, in response to the current economic landscape and job market conditions.
What is affecting Canada's job market recently?
As of the end of 2022, job markets remain volatile due to several reasons. For instance, the labor market is greatly affected by the economic trends of certain regions in Canada, as well as the recent developments in technology, industry, and changes in demographics.
This, in turn, dictates the types of professionals that companies are looking for. As a result, many professionals are seeking employment according to the labor market trends.
At first glance, this may spell a difficult job-hunting experience, but this has surprisingly benefited many career-seekers, Canadian companies, foreign investors, and the job market itself.
Why the Salary Increase?
As mentioned, the economic landscape of Canada is rapidly changing, which is a common circumstance for all the G7 countries. Canada, for instance, is the only country that has a trade agreement with all the members of the G7 nations.
Among the advantages brought by the ever-changing state of the Canadian job market is the projection of a salary increase in 2023. The salary increase was established by over 400 organizations that joined the pulse survey, as the outcome of the highly developed Canadian mixed-market economy and the current struggles in the job market.
The main reason that was accounted for by Canadian companies for the salary increase is the adjustment to the market, and the other reasons are to maintain strategic and critical employee positions and keep employees from leaving companies.
To add, approximately half of the business owners have agreed to have a higher salary increase in 2023 compared to their revealed salary raise in 2022.
How to make good use of this?
While the whole country will experience a significant salary raise, it’s still better to find the best deal by selecting the right region to find a job. After all, every province in the country will offer you a varying salary increase percentage.
According to the data, the revised budget is considerably higher than the initial budget for all provinces with variations between provinces of up to 0.5%. This also means that other regions will have a more substantial increase compared to others, which is a reasonable reference in choosing a province to be employed in.
Which province is the best to go to for a salary increase?
In terms of salary increase alone, choosing Quebec will offer you the best deal. Since Quebec companies have projected to raise their budgets by a total of 5.1%, with an additional budget increase of 1.5% for non-unionized employees.
Following Quebec, Ontario has the second-best chance of getting a salary increase this year, with a revised budget of 4.2% and an added budget of 1.4%.
While all these figures look promising and at “record-high levels”, as stated by the experts from Normandin Beaudry, this, however, is not the only strategic course of action that should be employed to weather Canada’s current economic landscape.
Especially in cases that do not necessarily involve an increase in fixed payroll costs. For instance, a combination of monetary and non-monetary components can help organizations set themselves apart from the competition.
Salary structure projection in 2023
Additionally, Normandin Beaudry projected salary structure increases for Canada’s non-unionized employees. These projections demonstrate the importance that organizations are placing on their salary structure as part of their talent management strategy.
Here are the salary structure increases for non-unionized employees by the province in 2023:
Moreover, compared to an initial forecast of 3.0% last summer, the average salary structure increase forecast for this year in Canada is currently at 3.2%, excluding organizations that decided to freeze their salary structure.
Is this great news for job seekers in Canada?
The answer is definitely, a yes. Not only is this great news for Canadians, but this is also great news for all professionals all over the globe that are interested in moving to Canada to study for skill and knowledge growth or work.
Moreover, the companies in the country are highly likely to keep their employees for a long time, they will be hiring more professionals to keep up with the country’s current economic trend. So, this might be a good year to pursue career advancement and grab the opportunity for a salary increase in Canada.
If you want to know more about the current business trends in Canada. Fill out our easy online application form or contact us at +63 917 555 9027.
