Canadians’ average weekly earnings rose in May at the fastest pace in 15 months, according to data released Thursday by Statistics Canada.
Average weekly earnings of non-farm payroll employees were $1,031 in May, a 3.4% year-over-year increase and the highest growth rate since February 2018. Wages were up 1.1% from April.
In addition to the earnings increase, the number of non-farm payroll employees increased in May by 32,600 from April.
In a research note, Scotiabank Economics vice-president Derek Holt said the wage growth translates to a real wage gain of about 1% using May CPI.
“Wage growth is ripping in the Great White North, by comparison to other major industrialized nations,” he said.
As other central banks struggle with low inflation and signal rate cuts, the Bank of Canada held its overnight rate earlier this month, noting a global economic slowdown even as the Canadian economy rebounds. The bank said consumption is supported by a strong job market and rising wages.
Holt said May’s wage growth likely won’t change the central bank’s rate path.
“It’s rather inconceivable the BoC would get too hawkishly agitated by this as the rest of the world’s central banks turn increasingly dovish,” he said.