Quebec leads way in salary increases, survey shows

Wages are rising faster in Quebec than in any other province, and Quebec is expected to continue leading the country in 2018, according to a survey conducted by the Toronto-based human resources company Morneau Shepell.

Average salaries in Quebec are expected to grow by 2.6 per cent, as a percentage of payroll, in 2018, according to the survey, which was released on Wednesday.

That’s compared to a national average of 2.3 per cent. British Columbia and Newfoundland and Labrador are expected to see the second largest increase this coming year, at 2.4 per cent.

“There are certainly some good, strong economic indicators for Canada overall,” said Paula Allen, the vice-president of research and integrative solutions at Morneau Shepell. “We are seeing job creation, we are seeing good economic forecasts and, for the first time in a long time, we’ve seen interest rates increase.”

The survey, which was conducted in July, found that average salaries in Quebec grew by 2.4 per cent over the previous 12 months.

Again, that was the highest rate in the country and compares to a national average of 2.2 per cent.

Ontario, Saskatchewan and Newfoundland and Labrador followed closely behind Quebec, with average increases of 2.3 per cent.

Allen said it’s likely the increases in Ontario and Quebec are being driven by the large number of head offices in the two provinces.

Quebec’s unemployment rate, currently at its lowest level in more than 40 years, is also playing a role.

But there’s a broader trend as well, Allen said. As technological changes affect more industries, employers are increasingly recognizing the need to have a resilient, adaptable and highly skilled workforce.

Participants in the survey were 370 employers, with 894,000 employees.