According to a survey conducted by financial management consulting firm Normandin Beaudry, workers across this country are expected to see a wage increase of 3.6%, on average, in 2024.
Surveying more than 700 companies across Canada, the Ontario-based firm noted several findings of value for employed Canadians, some of which allude to a positive future and some revelations that suggest salary freezes could be on the horizon as well.
What follows will recap the results of Normandin Beaudry’s survey and provide a look into what this means for Canadians, with a particular focus on potential impacts for newcomers to Canada.
In addition to the expected average salary increase of 3.6%, the Normandin Beaudry survey found that just two percent of companies are predicting salary freezes for 2024.
Note: Prior to the COVID-19 pandemic, wage freezes averaged three to five percent
Other notable findings from this survey include:
1. 43% of surveyed companies say they plan to “grant an additional average salary budget of one percent”
2. Certain sectors are considered “likely” to see wage increases above the national average (up to 3.9%); these sectors include: STEM, Real Estate, Manufacturing and Accommodation and Food Services
Of importance is the fact that STEM occupations are in high demand across Canada, as evidenced by Canada’s Express Entry category-based draws. STEM occupations are one of six categories chosen by the federal government as an area of focus for Canadian immigration through Express Entry, and 28-31% of remaining Invitations To Apply (ITAs) for 2023 are expected to be issued to immigration candidates from this category.
In addition, according to the 2021 Express Entry year-end report, two of the top five most common occupations – Food Service Supervisors (13,097 ITAs) and Cooks (4,624 ITAs) – upon receipt of an ITA for successful Express Entry candidates were in the Accommodation and Food Services industry.
3. Certain provinces – Quebec (3.7%), Yukon (3.6%), Ontario (3.6%) and British Columbia (3.6%) – are expected to see salary increases at or above the national projected average for 2024
4. Canada’s remaining nine provinces and territories are projected to experience wage increases slightly below the 3.6% national average
Note: Employed Canadians in the Northwest Territories, Saskatchewan and Prince Edward Island are projected to receive average salary increases of 3.3%
What this means for newcomers to Canada
Around the world, we rely on money acquired through employment to live comfortable lives. For obvious reasons, then, an increase in average salary across Canada is a positive development for all residents of this country.
This is especially true for newcomers to Canada, who may sometimes need more money than established Canadians to help provide for their families and establish a comfortable quality of life in a new country. Therefore, if the projections from this Normandin Beaudry survey ring true, newcomers to Canada will benefit greatly from the average salary increases that are projected to come next year.
As noted by the recently published 2023 Best Countries rankings from U.S. News, Canada already ranks third among 87 countries in quality of life, trailing only Sweden and Norway. With this in mind, the projected salary increases in 2024 should only help to solidify the strong quality of life newcomers can have in this country.
Note: Canada was recently ranked number two overall in the U.S. News’ Best Countries ranking for 2023. For more, click here.