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    • Canadian wages tick up but still lag far behind inflation

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    A recent report by showed that Canadians’ average weekly earnings increased 3.5 per cent in June 2022 compared with the same month last year. But given current inflation, the uptick may still not be very encouraging for many Canadians.

    Current inflation in the country stands at 7.6 per cent. Although it's down from 8.1 per cent in June—the highest rate we’ve seen in nearly four decades—the cost of living continues to remain high, especially for certain sectors such as construction and health care.

    Data from StatCan shows that only 5 sectors out of 23 had average weekly earnings in June that were above the current inflation rate.

    Price pressures in Canada are starting to spread across different sectors because the country’s economy is in excess demand—largely because there aren't enough goods and services to match the increased demand in the fully reopened economy.

    “Employers can’t find enough workers and they’re increasing wages to attract and retain staff,” said Tiff Macklem, governor of the Bank of Canada at a recent press conference in Ottawa.

    According to data from StatCan, the average weekly earnings have trended upwards since June 2021 and this could be a result of various factors such as wage changes and average hours worked per week.

    The average wage increase is a trend likely to continue in the coming months. According to a June report by (CFIB), employers are expected to raise average wages by 3.7 per cent over the next year.

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