Canadian Wages: Trends and Challenges (July 2023)

Wages play a crucial role in the economic well-being of individuals and a nation's overall prosperity. As an essential component of the employment landscape, they directly impact the quality of life, job satisfaction, and economic growth.

Overall Wage Growth:

The latest statistics show a positive wage trend, with an impressive 5% annual increase. The average wage currently stands at $33.24. This growth is a promising sign of a healthy economy and reflects the demand for skilled and qualified workers in various industries.

The Gender Pay Gap:

Despite the progress made in recent years, the gender pay gap remains a persistent issue. Men earn $38.72 on average, while women earn $33.98, representing approximately 88% of what men earn. This discrepancy highlights the need for continued efforts to address gender-based wage disparities and ensure equal pay for equal work.

Wage Increases by Industry:

Analyzing wage growth across different industries provides valuable insights into the evolving job market.

Administrative support services experienced the most significant wage increase at 5.4%, followed closely by manufacturing at 5.1% and construction at 4.8%.

Professional and technical services grew by 4.3%, while accommodation and food services increased by 4.0%.

In contrast, retail workers had the lowest yearly increase at 1%.

Union vs. Non-Union Wages:

The data reveals that union wage rates are approximately 10% higher than non-union rates.

However, when focusing on permanent positions alone, the wage gap narrows to 6% in July 2023.

Unions continue to play a crucial role in advocating for better wages and working conditions for their members.

Alberta's Wage Trends:

Alberta's economy has witnessed robust growth, reflected in the 6% yearly wage increase. This growth signals a strong demand for skilled labour in the province and positions Alberta as a competitive player in the job market.

Collective Bargaining in Alberta:

Looking into collective bargaining in Alberta, private-sector settlement rates have shown an upward trend. Settlement rates for 2023 are 4.2%, 3.1% for 2024, and 2.2% for 2025.

Conclusion:

Wage trends represent the livelihood and well-being of working individuals and families. The positive growth in average wages is a positive sign for the Canadian economy, indicating increased demand for skilled labour. However, the persistent gender pay gap is a reminder that more work needs to be done to achieve pay equity.

As various sectors experience differing wage growth rates, policymakers, businesses, and labour representatives must collaborate to create an inclusive and equitable job market.

By addressing the gender pay gap, promoting fair wage negotiations, and investing in workforce development, Canada can pave the way for a stronger and more prosperous future for all its citizens.

Only through concerted efforts can we build a workforce where talent and dedication are rewarded and every individual has the opportunity to thrive.

Lloyd Jacobson , President

Sam Emke , Vice President

Sam Kemble , Executive Operating Officer

National Construction Council, Local 1999