Un examen plus approfondi des pressions salariales au Canada

In this note, we provide a brief outline of the recent developments in wage measures in Canada. We then assess whether wage growth is consistent with its fundamentals. Our analysis indicates that wage pressures remain subdued and almost all measures show that wage growth has remained below its historical average since mid-2015. With respect to the relationship between wage growth and its fundamentals, we find that the wages and total compensation growth was weaker than expected considering the rate of unemployment observed since 2015. This is partly due to the weak labour productivity growth. Finally, we observe that pressures on domestic production costs coming from wages remain modest.