Are wages keeping up with inflation?

April 20, 2022

Nearly two-thirds (64 per cent) of Canadian workers’ wages are falling behind rising inflation, according to the Canadian Centre for Policy Alternatives (CCPA).

“Contrary to suggestions that workers’ rising wages are contributing to rising inflation, the opposite is true: most Canadian workers’ wages are falling behind the rising cost of living,” says David Macdonald, senior economist at the CCPA.

Public sector workers’ wages over the past two years have grown at a slower pace than the 3.4 per cent average annual inflation: those who are working in public administration only had a 1.5-per-cent-a-year pay increase; workers in education services only had a 1.6-per-cent-a-year pay increase; workers in health care and social assistance only had a 2.1-per-cent-a-year pay increase.

“Some provincial governments froze the salaries of nurses, PSWs and teachers, despite many of them working on the front lines of the COVID-19 pandemic,” he says. “The folks trying to keep us all safe should be first in line for a raise, certainly one that at least keeps pace with inflation. Unfortunately, they’ve been at the back of the line.”

Source: HR Reporter