Canadians are more optimistic about their job security and salaries this year, says a new BMO survey.
It also suggests companies are hopeful about their hiring and growth prospects in coming months.
About 39% expect a promotion or raise this year, up 11% over last year, despite high unemployment rates and disappointing economic reports.
The Canadian economy shed 30,400 jobs last month, for instance, which pushed the unemployment rate up to 7.3%. It was the first major hit in nearly a year. And the economy has been growing at a rate below 2% since last fall.
But, workers are relatively well off compared to their American and European counterparts. Our unemployment rate is 1% lower than the U.S.’s and 4% lower the Eurozone’s, says BMO senior economist Sal Guatieri.
“Canadians should expect wages to rise modestly faster than inflation, supporting household purchasing power, with the strongest gains in Alberta and Saskatchewan,” says Guatieri.
Not all workers are convinced, though. About 22% expect their company to downsize, while 24% are concerned about their particular jobs and salaries.
In other news, a survey by Mercer reports non-union workers across Canada can expect wage increases of 3.2% on average next year.
The projected increases would match actual increases in base pay reported for 2012. They would also be slightly higher than the average of 3% in 2011 and 2.9% in 2010.
Further, both Flaherty and Prime Minister Harper are calling for Canadian businesses and employers to invest their billions of dead cash back into the economy.
Harper has said there’s money sitting on the sidelines on a global scale that could revive the world economy if brought into play.
Read: August enthusiasm cools
Mark Carney has also claimed companies are holding on to their cash due economic instability, but demanded they return it to their shareholders.