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August 19, 2021

Your salary set to increase in 2011: report

Guessssssssssss what!

Yes, after an endless loop of terrible economic news – stocks retreating in reaction to a gloomy U.S. outlook, a sagging housing market and the looming double-dip recession – we’re here today with a positive report: your long-suffering wallet might soon get a boost.

According to a new survey of Canadian employers, Canuck workers can expect to see their salaries grow by almost three per cent next year.

By consultant Mercer’s numbers, Canadian salaries will jump by 2.9 per cent in 2011 – a nice change of pace in an era where “wage freeze” has become an all-too-common phrase in the working world.

While workers in the oil/gas sector and other resource-based industries are set to see the biggest gains, Mercer suggests, everyone should be seeing more dough in 2011 than years past. The near-three per cent wage hikes forecasted for 2011 are up from the 2.7 per cent workers saw in 2010 and well above the measly 2.0 per cent they slugged through in 2009.

“Overall, the dampening impact on salaries caused by the 2009 economic crisis is subsiding,” consulting firm Aon said in a release reacting to the news. “Most employers are expecting to be in a position to afford more aggressive salary increases than they have implemented in recent years.”

In fact, not only will wages begin to increase at a reasonable rate again, the whole idea of the recession-inspired salary freeze looks set to become a thing of the past.

Of the 600-plus employers Mercer questioned for their survey, only two per cent say they project a ‘cross-the-board wage freeze in 2011. This is a far cry from the 31 per cent who levied such an unholy rollback on their employees just last year.

Now, news of wage increases are all great and good, but it might just take bit more than economic forecasting to make cynical Canadians drop their guard.

By a poll, about 84 per cent of respondents said they haven’t heard any talk of pay hikes around their work place yet, as of press time Thursday.

So, is this just a “We’ll believe it when we see it”-style pessimism, or do such results suggest the Mercer survey might be a bit premature?

Has there been any talk of pending pay hikes at your work for 2011?

By Jason Buckland, MSN Money



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Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...

James HaversJames Havers

James is the senior editor of MSN Money living in Toronto. He has worked for the Nikkei Shimbun (Tokyo),,, Canadian Business and other publications. Havers turned to journalism after teaching overseas.

Jason BucklandJason Buckland

The modern-day MC Hammer of money, Jason can often be seen spending cash that isn’t his with the efficiency of a Wilt Chamberlain first date. After cutting his teeth as a reporter for the Toronto Sun, he joined the MSN Money team with...