OTTAWA – New data from Statistics Canada reveals that the average wages for working Canadians outpaced inflation on a year-over-year basis in April, offering a glimmer of positive economic news. The report, released Thursday morning, indicates that Canadians earned an average of $1,297 per week, marking a 4.4% increase from the previous year. In contrast, inflation rose by a more modest 1.7% over the same period. Monthly, average wages also saw an increase of 0.8%.
Sectoral Gains and Disparities:
While the national average shows improvement, certain industries experienced more significant wage growth. The information and cultural industries led the charge, with average weekly wages surging just over 10% to $1,875. The real estate sector also saw substantial gains, with average weekly earnings climbing 9.7% to $1,361, an increase of approximately $120 from the previous year.
When it comes to top earners, employees in mining, quarrying, and oil and gas extraction continued to command the highest average weekly wages at $2,492, an increase of about 5% year-over-year. However, the accommodation and food services sector remained at the lower end of the spectrum, with average weekly earnings of $521.16, despite a similar 4.6% rise. Workers in arts, entertainment, and recreation also faced lower wages, averaging $759.63 per week.
Job Vacancies Decline:
The report also highlighted a contraction in job vacancies across several sectors. Significant year-over-year declines were observed in health care and social assistance (-23.9%), accommodation and food services (-21.7%), and construction (-13.8%). Regionally, the drop in vacancies was most pronounced in British Columbia (-8.5%), Alberta (-9.4%), New Brunswick (-16.8%), and Newfoundland and Labrador (-26.3%). The remaining six provinces saw little change in vacancy rates.
Why Doesn’t It Feel Like a Raise?
Despite the positive wage growth against inflation, many Canadians may not feel a corresponding improvement in their financial well-being. David Macdonald, a senior economist at the Canadian Centre for Policy Alternatives, explains this disconnect. “These are the types of calculations that economists do,” Macdonald stated, referring to “real wages” and gains against inflation. “But folks are upset that prices are going up on things like regular everyday purchases like food. They’re upset that prices for (rent) or the price of purchase for houses has been going up and really hasn’t been coming down all that much.”
Macdonald noted that while wages have been outperforming inflation since 2023, making up ground lost during the soaring inflation of the two preceding years (largely attributed to the COVID-19 pandemic), the economic outlook remains uncertain. He cited instability related to U.S. President Donald Trump and the potential for new tariffs as factors making future predictions exceptionally difficult. “What’s pretty clear in the economic modelling is that no one knows,” Macdonald concluded, emphasizing the unpredictable nature of current global economic forces. “This is so dependent on a single person and their whims, that whatever Donald Trump tweets today might be different from what he tweets tomorrow. It could be much better, it could also be much worse.”