Canadian organizations plan another year of moderate base salary increases for 2016, according to The Conference Board of Canada’s Compensation Planning Outlook 2016 report released today. The average base salary increase for non-unionized workers is expected to be 2.6% next year, with the lowest increases going to workers in British Columbia and Alberta.

The reports expects workers in Alberta to have one of the lowest average increases in the country at 2.4%, down significantly from the average increases they have seen in recent years and ahead of only British Columbia at 2.3%. On the flip side, Saskatchewan and Manitoba employers have the highest projected average increases at 3.2% and 2.9% respectively.

In 2015, 74% of employees received a salary increase, down from 86% who received increases in 2014, according to the report.

“Although Canadian organizations are planning salary increases for 2016, employers remain cautious about Canada’s economic performance and are opting for modest wage increases, similar to that provided in 2015,”said Lynn Stoudt, VP, leadership and human resources research at The Conference Board of Canada. “The effects of the drop in oil prices have been felt most strongly in Alberta and accordingly employers in the province are planning for lower increases.”

The oil and gas and natural resources sectors saw involuntary turnover rates nearly double since last year. Overall, employees in the oil and gas industry can expect increases averaging 2.1% in 2016.

Compared with 2014, fewer Canadian employers reported challenges recruiting and/or retaining staff. The percentage of organizations experiencing difficulty recruiting and retaining employees this year fell to 59% from 64% last year. The top professions in highest demand include specialist IT, skilled trades, engineering, management, and sales and marketing.

The Compensation Planning Outlook summarizes the results of The Conference Board of Canada’s annual compensation survey and forecast. The survey was conducted between June and August 2015 and 370 organizations participated in the research.