Blue-collar Wages Stagnant Over Past Decade

Ottawa, ON — Hourly earnings of managers, as well as those of professionals employed in business, finance and computer and information systems, increased faster than those of any other occupational groups during the past 10 years, according to a new study by Statistics Canada, ‘Hourly earnings: 1997 to 2007’.

On the other hand, the study reveals, blue-collar workers in manufacturing, clerical employees and salespeople in retail trade saw virtually no growth in earnings.

The study found that between 1997/1998 and 2006/2007, the average hourly earnings of managers employed in the private sector grew a solid 20%. This was four times the average rate of 5% among other private-sector employees.

Hourly earnings of specialist managers — those involved in fields such as engineering, science, information systems, sales and marketing — increased by 23% on average. Those of other managers grew 18%, the same rate for professionals employed in business and finance.

In contrast, clerical workers and manufacturing employees involved in blue-collar work or supervision tasks saw virtually no wage growth. Nor did cashiers, retail salespersons and sales clerks. Wages stagnated for these workers, who represented 26% of private-sector employment in 2006/2007.

Overall, average hourly earnings of private-sector employees increased 7% during that period.

The article Earnings in the last decade is in the February 2008 online edition of Perspectives on Labour and Income, Vol. 9, no. 2, available from the Publications module at www.statcan.ca.