MNI: Canadian Firms See Record 3.7% Wage Increases

Small businesses predict record wage increases and near-record price gains over the next year, according to a Canadian Federation of Independent Business survey published Thursday.

Expected wage increases climbed to 3.7% from 3.5% in May, the highest in in CFIB data back to 2009. The measure has climbed from 2.8% in January and 1.7% in May 2021. Almost a quarter of firms in the latest survey expect wage increases of at least 6%.

Firms are also planning 4.7% price increases over the next year, close to the record 4.9% set in the prior two months.

Wage and price readings exceed the Bank of Canada's 1% to 3% band around its 2% inflation target. Canada's job market has potential for further gains even with unemployment at the lowest in modern records, a former government economist has told MNI. (See: MNI INTERVIEW-Canada Job Mkt May Get Even Hotter: Indeed Econ)