Canadian Salaries Not Keeping Pace with Inflation

There is a worrisome gap between the annual growth in Canadians’ employment income and the increase in inflation: wage growth has stalled in Canada. The result is a challenging savings environment.

According to a recent article published by the Globe and Mail¹, and both the Statistics Canada Survey of Employment, Payrolls and Hours and the government’s Labour Force Survey wage growth has stalled with reports of  year-over-year increases of only 0.9% and 1.1%, respectively.

Although the numbers vary slightly because they are based on different data, both sources agree that Canadians’ annual wage increases are not keeping pace with an annual increase in inflation of 1.6% over the same period.

Contributing to the depressed average wage of $966 weekly are factors such as the plunge in oil prices, which eliminated many well-paying natural resources jobs; and growth in the number of lower-paying jobs, such as those in accommodation and food services. Year-over-year, workers paid by the hour saw more modest wage increases (0.9%) than did salaried employees (2%).

For your clients, this means it’s becoming more and more challenging to accomplish their financial goals within a shrinking personal budget and with reduced personal cash flow. Knowledge Bureau’s Real Wealth Manager (RWM™) Program gives you the training and skills you need to help your clients manage the challenges of inflation, taxes and fees while advising them on strategies for the accumulation, growth, preservation and transition of sustainable wealth. Learn how to use this client-centric approach to assist your clients in reaching their financial goals despite the drag of inflation.

Sign up here by noon on June 30 to save on tuition for the newly minted RWM™ program.

¹Younglai, R. (May 25, 2017) Canadian wages lag the annual inflation rate: survey, Globe and Mail.

©2017 Knowledge Bureau Inc. All Rights Reserved.

Refer a Friend	Research	Calculators	Course Trials