Falling oil prices and overall economic uncertainty have caused a number of companies in British Columbia and across Canada to cut their forecasts for non-union employee raises.
The Conference Board of Canada asked a number of employers asked last summer how much more they expected to pay for employee compensation in 2015. It asked the same question again in December and early January, and the forecasts had fallen.
B.C. employers now anticipate giving raises of 2.3% in 2015 – down 0.2 percentage points from when they were first asked. The same drop was found nationwide, with anticipated salary increases slipping from 2.9% to 2.7%.
“Many organizations are waiting to see how the economy fares before finalizing plans. said Ian Cullwick, the Conference Board’s vice-president, leadership and human resources research. “The next few months will be challenging for employers as they balance the need to retain top talent with affordability.”
Cullwick said that in particular, companies in Alberta and Saskatchewan may further downgrade their forecasts for raises and may start enforcing pay freezes as energy companies cut back.
Nationwide, the biggest forecast downgrade was found in retail and wholesale trade jobs, which fell 0.5 percentage points from 2.8% to 2.3%. The only sector that has increased its forecast was communications and telecommunications, which expects raises of 2.4% – up 0.1 percentage points.
