2023-05-12 22:48:41
Small business employees can expect a 3.3% wage increase over the next 12 months, according to the latest data from the Canadian Federation of Independent Business.
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Although this is an increase that has long been requested, it is a drop of 0.5% from estimates last June.
“As people see inflation go down, obviously that also influences employers and the labor market,” explained Simon Gaudreault, chief economist and vice-president of national research for the Canadian Federation of independent business. That’s why we passed the peak of the big increases.
This is also an increase well below inflation. Result: the purchasing power of these employees will continue to decline, unless the consumer price index (CPI) also continues to decline.
By 2022, the inflation rate had risen to 6.8%. In March 2023, it was set at 4.3%.
“Salaries will always follow with a certain delay, added Simon Gaudreault. For what? Because it’s much faster to increase prices, we can adjust. On the other hand, when you go there with a salary increase, you have to make sure that this price increase is for the long term because it might go down once more.
The past three years have not been easy for companies. Currently, 20% of small business owners believe that the overall situation of their business is poor.
And only 34% would think the situation is quite good, according to a survey by the Canadian Federation of Independent Business (CFIB). Moreover, it is in Quebec that the confidence index is the lowest in Canada.
“In Quebec, we are more affected by the labor shortage. More companies report having to deal with the negative impacts of labor shortages. With interest rates rising, we have to finance our activities. It’s starting to do a lot, ”said the CFIB.
Statistics Canada should release the new inflation rate next Tuesday. The Bank of Canada will announce its new key rate in June, if there is a change.
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