Thursday, November 24, 2011

Canadians' wages not keeping up with cost of living

Canadians' wages not keeping up with cost of living:

Canadians' wages not keeping up with cost of living

Canadians' wages aren't keeping up with the rising cost of living and will continue losing ground to inflation over the next 12 months, says CIBC World Markets deputy chief economist Benjamin Tal.

Canadians' wages aren't keeping up with the rising cost of living and will continue losing ground to inflation over the next 12 months, says CIBC World Markets deputy chief economist Benjamin Tal.

Photograph by: Fabrizio Costantini, Getty Images

OTTAWA — Canadians' wages aren't keeping up with the rising cost of living and will continue losing ground to inflation over the next 12 months, says CIBC World Markets deputy chief economist Benjamin Tal.

Statistics Canada released data Thursday showing that Canadians' average weekly earnings edged up 0.3 per cent in September to $872.75. On a yearly basis, earnings rose 1.1 per cent, the smallest increase since November 2009.

Inflation in the cost of living, meanwhile, is rising at an annual rate of 2.9 per cent.

"Wages are actually going down in real terms," said Tal. "We will be lucky if we keep up with inflation over the next 12 months.

"It's a reflection of softer hiring in the public sector, a slower construction industry and even in the manufacturing sector we're seeing a shift from high-quality to low-quality jobs," Tal said. "Add to that the fact that employment is slowing."

Tal added, however, that the trend is cyclical as opposed to structural in nature and that wages should pick up again once the labour market improves.

While average hours worked per week can also influence growth in year-over-year earnings, the average work week was unchanged in the 12 months to September at 33 hours, the federal agency said.

Wages grew in every province but Ontario and Nova Scotia, with the largest increases occurring in Saskatchewan, Prince Edward Island and Newfoundland and Labrador.

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TABLE 1

Average weekly earnings, September / monthly percentage change / yearly percentage change:

Sector aggregate / $872.75 / -0.3 / 1.1

Forestry, logging and support / $1,066.06 / 14.6 / 10.4

Mining, quarrying, and oil and gas extraction / $1,756.67 / -0.2 / 2.1

Utilities / $1,660.05 / -3.1 / 4.5

Construction / $1,117.40 / 1.7 / 5.2

Manufacturing / $975.74 / 0.4 / 0.1

Trade / $665.81 / -1.4 / 1.5

Transportation and warehousing / $905.89 / -2.5 / 1.0

Information and cultural industries / $1,085.58 / 0.4 / 3.3

Finance and insurance / $989.41 / -4.1 / -5.2

Real estate and rental and leasing / $814.63 / -2.4 / -0.8

Professional, scientific and technical services / $1,247.67 / 5.6 / 4.6

Management of companies and enterprises / $1,127.22 / -5.4 / -3.6

Administrative and support,

waste management and remediation services / $740.92 / -0.9 / 4.8

Educational services / $921.04 / -6.6 / -2.7

Health care and social assistance / $803.38 / 1.2 / 0.3

Arts, entertainment and recreation / $540.54 / 1.7 / -1.5

Accommodation and food services / $357.69 / 0.2 / -1.4

Other services (except public administration) / $714.36 / 2.1 / 2.2

Public administration / $1,122.50 / 0.3 / 0.0

Source: Statistics Canada

TABLE 2

Average weekly earnings, September / monthly percentage change / yearly percentage change:

Newfoundland and Labrador / $884.66 / 1.4 / 4.6

Prince Edward Island / $745.81 / 2.8 / 5.1

Nova Scotia / $767.05 / -0.1 / -0.1

New Brunswick / $790.75 / 0.2 / 3.7

Quebec / $802.01 / 1.0 / 0.9

Ontario / $889.13 / -0.3 / -1.3

Manitoba / $811.74 / -0.6 / 2.7

Saskatchewan / $906.22 / 2.4 / 6.9

Alberta / $1,042.77 / -0.1 / 3.8

British Columbia / $843.32 / -0.1 / 1.7

Source: Statistics Canada



Read more:http://www.montrealgazette.com/business/Canadians+wages+keeping+with+cost+living/5762387/story.html#ixzz1ef6raShe

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