"Just 16% of Canadian workers say their wages are keeping up with inflation. This is true amongst all types of workers, though gig workers (31%) are coping a bit better than white collar (15%), blue-collar (21%), or the service sector (19%)," according to research published by Pollara Strategic Insights.
"While many indicators and experts suggest inflation may have peaked, two-in-three (67%) Canadians expect inflation to increase over the next few months, and a similar percentage (66%) expect the current period of high inflation to last at least another year," the publication continues.
According to the Canadian workers consulted for this research, the main responsible for the increase in inflation is the impact of COVID, followed by the performance of the Canadian government, the breakdowns in global supply chains, the war in Ukraine, and the role of the Bank of Canada.
With this new scenario, 73% say they are buying cheaper brands of groceries or less expensive food products, 72% revealed eating out less at restaurants, 68% admitted to spending less on vacations, and 67% say they are delaying major purchases because of the high inflation.
Fortunately, many firms continue to report plans for raising wages to attract and retain workers, according to the Business Outlook Survey conducted by the Bank of Canada. "A growing number of businesses mentioned the rising cost of living as an essential source of wage growth. Nearly half of firms anticipate their wage increases will remain above pre-pandemic levels beyond the next 12 months," according to the survey.
"Many businesses said their non-wage compensation (e.g., vacation days, health benefits, the ability to work remotely) is more generous than before the pandemic. They noted this shift is to help retain staff and improve productivity (e.g., by reducing the number of sick days)," continues the publication.
Read the complete report by Pollara Strategic Insights here.
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