Canadians’ wages took major hit in 2022 amid high inflation rates: StatCan
Peak inflation rates in 2022 cost Canadians a major chunk of their wages, according to a new Statistics Canada report.
The report, released Friday, says the Consumer Price Index rose 6.8 per cent on average that year, while median annual wages decreased in most provinces and territories when adjusted for inflation.
The inflation increase in 2022 was a 40-year-high since 1982’s 10.9 per cent hike, according to StatCan. Tax filers in 2022 reported median wages of $45,380, a 1.6 per cent decline from the previous year after adjusting for inflation.
So while on paper wages may have gone up, incomes didn’t go as far when inflation was factored in.
StatCan’s report says the inflation hike took an “outsized bite out of real annual wages, salaries and commissions reported by tax filers in that year.”
“This decline coincided with a recovery of employment in lower wage sectors in 2022, which followed periods of COVID-19 pandemic-related shutdowns in 2020 and 2021,” the report explains.
Examples of these types of employment were the arts, entertainment and recreation sectors which accounted for 1.6 per cent of total employment in 2022 compared to 1.4 per cent in 2021. Another example was the accommodation and food services sector, which accounted for 7.1 per cent of total employment in 2022, versus 6.3 per cent the previous year.
The report says these types of employment did see wage increases in 2022, but they still remained the lowest in all sectors.
On Wednesday, the Bank of Canada held its benchmark interest rate steady at five per cent for a sixth straight decision even amid signs that inflation is easing. The central bank signalled a rate cut at its next meeting in June was in the “realm of possibilities” as long as evidence
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