Credit unions will lead the way for salary increases in British Columbia in 2016, according to the results of a Hays Group survey released August 26.
Financial services in general, made up of credit unions and banks as well as other related services, will be the province’s strongest sector in terms of compensation with expected increases of between 2.4% and 2.9% next year.
The financial sector in Canada as a whole will fare well in 2016, the survey found. An overall average salary increase of 2.8% is forecast in this area. While in Western Canada these gains will be led by credit unions and investment companies, Eastern Canadian growth will come from strength in the major banks.
Overall, salaries in British Columbia are expected to increase 2.3% across all sectors – lower than the national average of 2.4% and worse than all other provinces outside the Maritimes and Newfoundland.
The province has been below average across the board for the last few years, Rachel O’Connor, Hay Group’s senior consultant, told Business in Vancouver. The reasons for this in the past were obvious, she said, but it is no longer so easily explainable.
“The story was easier in the last couple years because the whole national average was very much lifted by what was going on in Alberta and Saskatchewan,” O’Connor said, pointing out there was intense competition for salaries in oil and gas-related jobs.
“As a result, the national average was high, and the provinces like B.C. that were not participating like that were all basically below the average.”
Nationally, growth in credit unions (3.0%), leisure and hospitality (3.0%) and insurance (2.9%) will lead the way.
Other than in the financial services sector, B.C. also will fare well in the public sector, which is comprised of government, Crown corporations, commissions and healthcare. Oil and gas will see declines, and the media and mining sectors will drop as well.
A further breakdown on the provincial level is not yet available as Hay Group said it will be presenting the full data at a series of presentations across Canada in September.
Employers in B.C. are not expressing a lot of confidence, O’Connor said.
“We’re certainly not a province that says, ‘we have a lot of stuff going on, we’re really surging right now,’ and that gets reflected in those numbers because employers are cautious and holding back. Our own resource industry is holding back as well.”
Alberta and Saskatchewan are still expected to fare well, despite the drop off in resources salary increases, with increases of 2.5% and 2.7%, respectively. Salaries in Ontario and Quebec are forecast to increase 2.5%.
Salary increases nationally are not like they used to be, O’Connor said.
“Its not like it was years ago when we saw increases over 3%; we’re not seeing that now,” she said. “We’re still not in great economic times.
“We are potentially in a technical recession again. Generally, employers are being rightfully cautious about making commitments and increasing pay when that’s one of the costs they can be a bit more conservative on to try to ensure that they stay financially sustainable.”
