Over half of Canadian business managers hiking wages: Bank of Canada – Toronto Sun

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Labour shortages and other issues have prompted 55% of managers at Canadian businesses to give their employees wage hikes, says a Bank of Canada report.

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“Businesses’ most pressing concerns in recent months have been labour shortages, supply chain disruptions and the costs associated with these two challenges,” the Bank wrote in a report called, “Business Leaders’ Pulse: An Online Business Survey,” according to Blacklock’s Reporter

The survey was based on questions issued to managers on a monthly basis in many sectors, ranging from ranchers to factory operators, including those with fewer than 20 employees.

“Across almost all industries, businesses reported labour shortages are causing a loss of sales,” said the survey.

In addition to raising wages, 36% of managers said they were turning away sales, 33% were increasing overtime, 25% were contracting out work, 20% were offering workers bonuses and new benefits, and 15% were reducing minimum qualifications to hire untrained employees.

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In a June 1 report, the labour department said unionized private sector wage gains to date in 2022 were running at 2.3%, the highest average since 2014, while the hospitality industry was seeing average pay gains as much as 3.4%.

“If we were to see wages run substantially ahead of productivity growth, it would become a concern that in that situation, higher wage growth could start to become an independent source of inflation,” Bank Governor Tiff Macklem testified last at the Commons finance committee last April.

Source: https://torontosun.com/news/national/more-than-half-of-canadian-business-managers-hiking-wages-bank-of-canada

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