[Canada] Salary growth to outpace inflation for first time in four years

New research has forecasted a 3.45 per cent increase in average base salaries for Canada’s non-unionised workers in 2025, outpacing inflation for the first time in four years, Talent Canada reports.

Telus Health’s annual Salary Projection Survey forecast, excluding salary freezes, is driven by ongoing labour shortages. The projected increase significantly exceeds the country’s current inflation rate of two per cent reported by the Bank of Canada earlier this month.

“The persistent demand for skilled talent is driving robust salary growth into 2025, despite easing inflationary pressures on employers,” Guylaine Béliveau - national practice leader for compensation consulting with Telus Health - said. “As inflation rates decline, employees stand to reclaim purchasing power lost in recent years. This shift could significantly boost individual financial well-being and overall workplace morale.”

The survey was based on data from over 355 Canadian organisations across various industries. According to Telus Health, provincial salary projections for 2025 revealed the following regional variations:

• British Columbia leads with a projected 3.6 per cent increase in highest average base salaries, followed by Alberta at 3.54 per cent and New Brunswick at 3.5 per cent.
• Quebec saw strong salary growth of 3.85 per cent in 2024, but expects growth to slow to 3.41 per cent in 2025.
• Nova Scotia consistently shows the lowest projected increases among provinces with statistically significant data at 2.94 per cent for both 2024 and 2025.

The highest projected increases by industry for 2025 are reportedly expected in construction (4.13 per cent), real estate (3.92 per cent) and business services (3.9 per cent). These same three industries also led salary growth in 2024.

For 2025, the lowest salary increases are expected in public administration (2.75 per cent), replacing information technology, which held the position in 2024.

Regarding salary structures, the forecasted increase for 2025 (2.72 per cent) is reportedly slightly lower than the actual increase implemented in 2024 (2.89 per cent).

Source: Talent Canada

(Quote and link via original reporting)

New research has forecasted a 3.45 per cent increase in average base salaries for Canada’s non-unionised workers in 2025, outpacing inflation for the first time in four years, Talent Canada reports.

Telus Health’s annual Salary Projection Survey forecast, excluding salary freezes, is driven by ongoing labour shortages. The projected increase significantly exceeds the country’s current inflation rate of two per cent reported by the Bank of Canada earlier this month.

“The persistent demand for skilled talent is driving robust salary growth into 2025, despite easing inflationary pressures on employers,” Guylaine Béliveau - national practice leader for compensation consulting with Telus Health - said. “As inflation rates decline, employees stand to reclaim purchasing power lost in recent years. This shift could significantly boost individual financial well-being and overall workplace morale.”

The survey was based on data from over 355 Canadian organisations across various industries. According to Telus Health, provincial salary projections for 2025 revealed the following regional variations:

• British Columbia leads with a projected 3.6 per cent increase in highest average base salaries, followed by Alberta at 3.54 per cent and New Brunswick at 3.5 per cent.
• Quebec saw strong salary growth of 3.85 per cent in 2024, but expects growth to slow to 3.41 per cent in 2025.
• Nova Scotia consistently shows the lowest projected increases among provinces with statistically significant data at 2.94 per cent for both 2024 and 2025.

The highest projected increases by industry for 2025 are reportedly expected in construction (4.13 per cent), real estate (3.92 per cent) and business services (3.9 per cent). These same three industries also led salary growth in 2024.

For 2025, the lowest salary increases are expected in public administration (2.75 per cent), replacing information technology, which held the position in 2024.

Regarding salary structures, the forecasted increase for 2025 (2.72 per cent) is reportedly slightly lower than the actual increase implemented in 2024 (2.89 per cent).

Source: Talent Canada

(Quote and link via original reporting)