B.C. salary hikes to keep pace
Salaries will increase overall in B.C., but wages still not enough to afford Vancouver housing prices. (FOTOLIA)
An annual study shows B.C. will likely see an average salary increase of 2.6% next year — on par with the forecasted national average.
Earlier this week, consulting firm the Hay Group released its salary projections for Canadian provinces in 2015. While B.C. falls in the middle of the pack behind resource-rich provinces Alberta (3.1%) and Saskatchewan (2.9%), the numbers are an improvement of .3% over last year.
Increases are influenced by a variety of economic factors, which include the current state of the labour market, strength of prevalent industry, competition for talent and the overall market within a province, said Rachel O’Connor of the Vancouver division of the Hay Group.
While B.C’s diversity of industry is a strength, public sector limitations on salary increases are a detracting factor, she said.
The projections for Vancouver are also forecast at 2.6%, up from 2.3% last year. But even with an increase, the city’s average household income won’t align with housing costs.
The average house price in Metro Vancouver was $670,300 in 2014, which would require 80% of the city’s average median household income to keep up with the mortgage, found the Hay Group.