Canadians can look forward to their largest salary increase in 5 years, the Annual Canadian Salary Survey recently revealed.

Salaries in Canada are set to increase by approximately 3.4% in 2007, due to continuous growth in the Canadian economy combined with historically low rates of unemployment, both of which are forcing employers to take a closer look at the pay-packages that they are currently offering employees. With skills shortages throughout various Canadian industries, employers are recognising the increasing necessity to increase the salaries of their employees in order to attract and retain the necessary skills for the advancement of their companies and organisations.

Graham Dodd, Western Canada Managing Consultant, with Watson Wyatt Canada commented: “Given these conditions, we expect that actual salary increases will likely exceed respondents’ forecasts.”