Quebec employers are expecting lower increases than in previous years because of the economic slowdown, according to a investigation report published this week. Some sectors will feel this phenomenon more, says an expert.
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The increases for the next year will vary between 2.8% and 3.8%, according to consultations with different compensation firms.
This is a lower percentage than in recent years, confirmed Karl Blackburn, president and CEO of the Conseil du patronat du Québec.
Last year, rates ranged from 3.6 to 4.1%.
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“It corresponds to the economic reality in which we find ourselves,” he explains on the show. To your business“There is an economic slowdown, much more uncertainty, we see it, and there is also enormous pressure being put on the market.”
These data also exclude salary increase freezes. About 7% of companies plan to have salary increase freezes for the next year.
The survey also ruled out bonus increases, for example for exemplary employees. In these cases, the increase rate is between 5.5 and 6.5 percent, according to Mr. Blackburn.
Which sectors are affected?
The health and service sectors will be the least likely to get a raise, according to Mr. Blackburn.
Archive photo, QMI Agency
Conversely, employees in the construction, real estate and oil sectors are among the luckiest, as they are most likely to get a raise.
The expert cannot say whether the increases will be more numerous in the coming years, but if the trend of economic slowdown becomes stronger, they could continue to fall.
However, salary is becoming less of a priority, according to the president.
Working conditions, company values, flexibility in work organization, such as the possibility of teleworking, are three factors that weigh in the balance of citizens looking for a job.
Photo Getty Images
A phenomenon more marked in Quebec
The CEO of the Employers’ Council confirms that the drop in salary increases in Quebec is slightly “below” other provinces in the country.
“There is greater pressure that has been put on the labour market in connection with the labour shortage in Quebec than elsewhere in the other Canadian provinces, which has produced more significant results in terms of wage increases,” he explains.
According to him, the American election could also play a role. “The results can have a direct impact on Canada’s economic strength, given the privileged relations we have with our partner in the South.”
To watch the full interview, click on the video above.
