Resource-based provinces lead in wage gains

Canada’s oil and gas workers will enjoy among the highest increases in earnings in the coming year, according to a new survey by the Hay Group. Based on information from more than 500 Canadian organizations regarding planned salary adjustments, the average projected increase will be 2.6 per cent. Oil and gas sector workers, however, will see increases of 4 per cent, reflecting the high demand for key skills and experience. Other industries that will have higher-than-average increases are chemicals, with 3.1 per cent, and utilities, 3 per cent.

oil-refinery-workers-resources-wages-industry-EDIWeekly
Workers in oil and gas industry will see higher wage increases than most other workers, according to survey of employers. Ontario, meanwhile faces shortages of skilled workers that cost the economy $24 billion annually.

In general, resource-based provinces will lead the rest of Canada in wage increases, the Hay report says. Newfoundland and Labrador will be at the top with 4 per cent, followed by Saskatchewan (3.4 per cent) and Alberta (3.2 per cent).

The Alberta government just released its own statistics, which show, among other things, that wages there actually rose 4.9 per cent between May 2012 and 2013, well above the national average. The province also saw a net migration gain of 11,000 as 200,000 people moved there from other parts of Canada, while 189,000 Albertans moved out. The oil and gas industry was the biggest contributor to the economy, with a record $44.6 billion invested in 2011. This was 25.2 per cent more than in the previous year.

In Saskatchewan, the company that tried and failed to buy Potash Corp. in 2010 announced that it will invest $2.6 billion in a potash project in Jansen, Saskatchewan. BHP Billiton was blocked from buying Potash Corp., which is Canada’s largest producer of the mineral. by the provincial and federal governments. This new investment at Jansen will increase Billiton’s total investment there to $3.8 billion, according to CBC news. The company will complete excavation and lining of production and service shafts, as well as other infrastructure.

There is a “clear divide” in Canada, with non–resource-based provinces coming in at or below average increases, ranging from 2.1 to 2.6 per cent. Ontario and the GTA are forecast to see increases of 2.5 per cent, just below the national average.

But Ontario employers, according to a recent report from the Conference Board of Canada, are investing much less in employee training than they did twenty years ago. This lack of investment, combined with changing skills requirements, has led to a shortage of skilled workers, which costs the province $24 billion in GDP annually, the report says. The top skills employers say they need are in engineering, technology, science and construction. Without a concerted effort by employers, government and educators, however, the skills gap will become greater, impeding businesses’ ability to grow.

Compared to other G7 countries, Canada is about in the middle for projected earnings increases, ahead of France, Italy and Japan, but behind the US (2.8 per cent) and the UK (2.9 per cent). India, China and Russia, on the other hand, are all projected to outstrip the G7 countries by a long shot, with growth of 10.8 per cent, 9 per cent and 8 per cent respectively.

Did you miss this?

Other Popular Stories

  • Shortage of skilled labour facing Ontario construction industry: report
  • SPACE 1971 vs today: looking back on the anniversary of Apollo 14's landing on the moon; with new landings planned, how much have we advanced?
  • March wholesale, retail sales lower in most sectors: Statistics Canada
  • US, Canada announce new safety regulation for railway tanker cars
  • Cars with “Nerves”? Self diagnostics and magnetostrictive material may deliver cars with feeling.
  • Toyota investment in Ontario brings new technologies, keeps jobs
  • Engineering positions: what's in demand, what does it pay, what do you need to qualify? Top seven engineering positions
  • Top seven pieces of exciting new tech that will soon become mainstream
  • SNC-Lavalin-China agreement could expand market for CANDUs
  • Carbon Nanotubes — from energy storage to automotive parts, from electromagnetic shields to biomedical applications — light, stable, durable
  • Forestry sector providing job relief for former oil patch workers
  • Ontario invests $488,250 to create new jobs in Subdbury and expand research in mining.
  • Will Ukraine be Canada's next big oil market?
  • Researchers claim improved performance from lithium-air battery
  • SpaceX’s Falcon 9 Ripped Hole in Ionosphere During 2017 Launch
  • World's largest offshore wind turbines would mimic palm trees to withstand winds
  • Electricity rates a disadvantage for Canadian industry: report
  • BC sees 100,000 LNG jobs, $1 trillion in revenues
  • Manufacturing sales up in November, government scraps duties on imported food ingredients
  • Manufacturing slowdown reflects oil and dollar declines
Scroll to Top