British Columbians aren’t likely to have a lot of extra cash burning holes in their pockets next year.
Workers in the province are forecast to receive the lowest wage hikes among all the provinces, according to a report released Thursday (October 29) from the Conference Board of Canada.
Wages in B.C. are expected to grow 2.3% in 2016 compared with top-ranking Saskatchewan’s 3.2% wage hike.
Alberta, which has been hit hard by falling oil prices, sits one spot above B.C. on the bottom of the list with a forecasted 2.4% wage increase.
Falling energy prices have also impacted B.C., which is expected to deliver its lowest oil and gas revenues in 30 years following disappointing land sales that amounted to $550,000 in September.
The province auctioned $25 million in leasing rights during the same month a year ago.
So far this year B.C. has brought in $6.9 million from leasing rights compared with $2.4 billion in 2008.
“The oil and gas and natural resources sectors saw involuntary turnover rates nearly double since last year, increasing to 10.4 and 7.5 per cent, respectively,” the report said, adding employers in these sectors are planning for lower increases amounting to 2.1%.
“These changes are not surprising, given decreased investment in the energy sector and supporting industries due to the low price of oil.”
But the energy sector is still attracting big investments in B.C.
Veresen Midstream announced earlier this month it would spend $860 million to build its Sunrise Gas plant near Dawson Creek. The facility would be the largest gas plant constructed in B.C. since the 1980s.
And despite expectations of low wage increases next year, the Conference Board of Canada released a report in May predicting B.C. would experience the highest GDP growth among the provinces in 2016 at 2.7%.
“While the forecast is generally positive, there are risks to the outlook. Job creation has been muted so far this year, and if this persists over the summer months it could hurt consumer confidence and the domestic economy,” the May report said.
While B.C.’s unemployment rate grew from 5.8% in June to 6% in July — in part due to more people entering the labour force — Statistics Canada reported September was a rebound month as the province added 12,500 more jobs and employment climbed 0.5%.
