Western Canada’s average weekly wages are showing the effects of the economic downturn, declining 1.3% for the 12-month period ending February 2016.
Across Canada, average weekly wages rose 0.4% since February 2015. And much like delicate green plant shoots that appear in the spring, the 0.4% increase since January 2016 hints at a resurgence in wage growth over the coming months.
At $1,118, Alberta’s average weekly wage is higher than the national average weekly wage of $954 and the average weekly wage for western Canada of $995.
British Columbia led the way with the highest monthly gain of 0.9% in average weekly wages, reflecting confidence in the economy. Over the past 12 months, average weekly wages gained a modest half a per cent, moving from $909 a week to $914. Wage gains are running behind the provincial rate of inflation growth of 1.6% since February 2015, the highest among the four western provinces.
Alberta’s loss in average weekly wage value of 3.4% over the year is a constant reminder of the grim economic picture facing the province. Even so, Alberta wage earners saw a modest increase in average weekly wages of 0.3% in February over January of this year. This small gain will help to repair household balance sheets frayed during the downturn.
The fortunes of Manitoba wage earners are also improving, with a 0.8% increase in average weekly wages in February 2016. Over the past 12 months, average weekly wages in Manitoba increased 2% higher than the rate of inflation of 1.1% for the province. The value of average weekly wages over the 12-month period increased from $875 in February 2015 to $893 in February 2016.
Activity in Saskatchewan’s diversified economy is helping to keep average weekly wages on track. From January 2016, wages increased from $991 to $993 in February. Over the past 12 months, average wage increases were at 0.2%, barely showing any growth but keeping wages from going backwards.
– Janice Plumstead is a Senior Economist