Manitoba sees a 2.3 per cent strong increase in real wage rates in 2007

An annual economic analysis of 2007 by the Institute of Chartered Accountants of Manitoba (ICAM) has ranked the province the runaway leader in real wage growth, which was more than twice the growth seen nationally.

According to ICAM, a 2.3 per cent increase in Manitoba’s real wage growth in 2007 came from a combination of solid pay increases, which averaged 4.4 per cent, and low provincial inflation.

Manitoba has historically had low real wages compared to the rest of Canada and still has the lowest real average hourly wages among the provinces, which were $20.67 in 2007. However, the trend over the past five years is narrowing the wage-gap between Manitoba and the national average.

The national average was 10.5 per cent higher than Manitoba’s real average hourly wage in 2002 and 7.8 per cent higher in 2007.

In 2007, industries such as mining, agriculture, and professional, scientific and technical services industries witnessed wage increases ranging from 10 per cent to 16 per cent while many sectors with large numbers of workers such as healthcare, education, retail/wholesale trade and construction saw more modest increases ranging from 3.1 per cent to 4.0 per cent. At the construction sector, Manitoba is paying significantly less and wage increases are lagging far behind the western provinces.

The Work section of ICAM’s annual economic analysis for 2007 also shows that Manitoba continued to lead the pack in pay equality (0.881) and the unemployment rate rose slightly to 4.4 per cent last year but remains well below the national average of 6.0 per cent. The province added 9,500 jobs to its economy but this was not enough growth to deal with the shortage of skilled labor.

In its recent economic outlook for 2008, the Conference Board of Canada has also expected a positive growth in Manitoba’s economy in 2008 at a steady rate of 3.6 per cent. This growth is explained by diversified manufacturing sector, large multi-year capital investment projects, an effervescent housing market, and strong commodity prices.

The growing economy of Manitoba has increased the demand for skilled workers. In recent years, the province has seen significant increase in its international in-migration numbers while the population loss due to inter-provincial migration is improving.

Manitoba's inter-provincial population loss last year (1,390 persons) set a ten year low. However, the decline was due to workers with post-secondary diplomas and certificates (the educational group that includes trades workers) leaving the province in 2007 as well as the entry of 3,800 workers into the labor force with no post-secondary certifications at all. Despite the loss of 1,390 people to other provinces, international in-migration to Manitoba hit a 10 year high and net migration to the province was just over 9,000 new residents last year.