Canadian Union Wage Growth Outpaces Inflation

OTTAWA, ON, May 21, 2025 /CNW/ - For the first time in three years, average wage increases in major Canadian settlements outpaced inflation, according to The Conference Board of Canada's latest Labour Relations Data Hub.

"Looking ahead, Canada's labour market is expected to face ongoing challenges," Diogo Borba, Senior Research Associate of Human Capital at The Conference Board of Canada. "Wage growth is projected to outpace inflation again in 2025, but a tightening labour market – driven by declining immigration targets and the ongoing retirement of baby boomers – will add to workforce pressures."

In 2024, wages rose by an average of 3.0 per cent, surpassing the year's 2.4 per cent inflation rate. The strongest gains were seen in manufacturing, primary industries, and entertainment and hospitality, while information and culture as well as education, health, and social services experienced the lowest. Regionally, wage growth was highest in Quebec and British Columbia and lowest in Alberta and Nova Scotia.

Labour disruptions remained a significant challenge in 2024, with major stoppages across key industries that resulted in 2.3 million person-days lost. Although this marked a sharp decline from the 6.6 million lost in 2023, it is the highest recorded number since 2006. The federally regulated transportation sector accounted over half of these work stoppages, with 1.3 million person-days lost.

With 143 collective agreements set to expire in 2025 and nearly one million unionized workers impacted as a result, labour negotiations will play a pivotal role in shaping the labour landscape in 2025. The education, health, and social services sector faces the highest number of expiring agreements, followed by public administration and transportation. Key negotiations include the Government of Canada's agreement with the Public Service Alliance of Canada, major construction agreements in Quebec, and large contracts in the education, health, and social services sector across multiple provinces.

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SOURCE Conference Board of Canada