OTTAWA — A new report shows real wages in Canada are plummeting, with weekly payroll gains falling to levels not seen since the recession.
Statistics Canada says average weekly earnings for non-farm payrolls actually fell 0.3 per cent in September, when compared with August, to $872.75.
On a year-over-year basis, the increase in earnings has dropped to 1.1 per cent from 12 months ago, the lowest pace of improvement since November 2009.
Analysts point out that in real terms Canadian wages are actually dropping, since the year-over-year increase is about one-third of the inflation rate.
Previous Statistics Canada reports highlight just how dramatically real wages have dropped in Canada in the last six months.
The increase in average weekly earnings was as high as 4.1 per cent in April, but has fallen steadily since.
CIBC economist Benjamin Tal says the trend is not a good omen for the economy because it means Canadians will have less disposable income to purchase goods.