The 'Great Canadian Slump' is back: Weekly earnings have increased only 1.6 percent between 2015 and 2024, or less than 0.2 percent per year
The 'Great Canadian Slump' is back: Weekly earnings have increased only 1.6 percent between 2015 and 2024, or less than 0.2 percent per year
Unfortunately, income growth has stalled to rates rarely seen in Canadian history. Only twice in the past century have we lived through more sluggish growth than today—both during serious recessions.
Labour productivity has grown by 0.2 percent annually, on average, between early 2015 and the end of 2023.
...average weekly earnings have increased only 1.6 percent between January 2015 and January 2024, or less than 0.2 percent per year.
This sounds like productivity is commensurate with pay. Maybe instead of advocating for interest rates to drop (which has issues of its own), we should be advocating for proper pay raises?
Edit to add a note: This comment is intending to call them out about poor wages. If you want more productivity, then pay us for it! I'm sick of doing the work of 3 people with measly, if any, wage raises!
But think about the shareholders. They can't just cancel Disney+ because of some silly pay raises.
The productivity/pay correlation has seized being true for several decades now. I'm not sure why some economists keep repeating that wages rise when productivity rises despite the data. That there's a match within this period for Canada is probably a coincidence.
The study you linked proves that there is significant wage inequality. The very first chart demonstrates that even though productivity has increased, wages have not kept up. This is exactly my point. I'm not sure if you were intending to agree with me, but your link is just further proof that wages are definitely not where they should be.
"Why should I work so hard for wages that don't compensate me for said work?" Said every underpaid worker ever.
My place of employment has been cutting headcount for years and just expecting the existing employees to do the same, and more, work for no increase in pay. And they wonder why productivity suffers?! I am still only one person. I cannot possibly perform as well as 3 people. Maybe if you'd stop cutting headcount and focus on getting things done, we'd actually be productive.
Higher interest rates slow spending
Higher pay increases spending
If only the economics of whole countries was this simple.