indicatorThe Twenty-Four

Wages are up, but not really

Wages adjusted for inflation have been on a downward trend

By Siddhartha Bhattacharya, ATB Economics 26 August 2022 1 min read

Wages in Alberta continue to grow, but not nearly enough to match inflation.

Seasonally-adjusted average weekly earnings (including overtime) picked up in the province for the second consecutive month, going from $1,253 in May to $1,257 in June (+0.4%). 

Average earnings in June were also up relative to the same month last year, rising by 2.2% on an unadjusted basis. Already higher-paying goods sector earnings grew by 4.5% and were responsible for most of the aggregate increase while average wages across services industries were up by only 1.1%.

The picture changes when you factor in inflation.

Real wages (i.e., earnings adjusted for higher consumer prices) have been on a downward trend for several months, fell to their lowest level in nearly thirteen years in June, and were down by 4.0% over the first six months of 2022 compared to the same period in 2021.

It’s a similar situation nationally, albeit slightly less dire. At their lowest point since September 2019, real wages in Canada were down by 3.4% on a year-to-date basis.

We expect the story to be largely unchanged when we get the numbers for July.

Answer to the previous trivia question: Paris was liberated from German occupiers on August 25, 1944.

Today’s trivia question: Who is credited with writing the first job resume?

When consumer price inflation is taken into account, average weekly earnings in Alberta fell to their lowest level in nearly thirteen years in June 2022

When consumer price inflation is taken into account, average weekly earnings in Alberta fell to their lowest level in nearly thirteen years in June 2022


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