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Canada’s GDP declines 0.1%; separate survey finds modest salary increases planned

October 31, 2014

Canada’s gross domestic product declined 0.1 percent in August, following no growth in July and increases in the first six months of the year. Increases of 0.5 percent and 0.3 percent were recorded in May and June respectively, Statistics Canada reported today.

Notable increases were recorded in the public sector (education, health and public administration combined), wholesale trade and the finance and insurance sector. Goods production fell 1.0 percent in August as most major subsectors registered declines, led by oil and gas extraction.

A separate survey released Thursday by The Conference Board of Canada found organizations plan moderate base salary increases for 2015 in response to sluggish economic growth. It also found 16 percent of organizations expect growth in the size of their workforce next year.

Salary increases vary considerably depending on region and industry, according to the report.

The highest average increase is in the oil and gas sector at 3.9 percent, while the health sector will see the lowest average increase at 2.2 percent. Saskatchewan and Alberta employers will lead the nation with projected average increases of 3.6 percent and 3.5 percent respectively. The lowest average increases are expected in the Atlantic provinces at 2.3 percent, followed by Ontario at 2.5 percent.

“Although more organizations are starting to report challenges recruiting and retaining employees, we're still not back up to pre-recession levels, when close to three quarters of organizations experienced difficulty in this area,” said Ian Cullwick, VP, leadership and human resources research.

The survey included 382 organizations across Canada and was conducted in June 2014.