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Alberta worker wages not keeping up with inflation

Since December 2012, Alberta has seen the largest discrepancy in the country between increases to worker wages and increases to the cost of living.

Recently, I was reviewing Statistics Canada data data on employment and average weekly earnings for each of the provinces.

I already wrote an article a few weeks ago regarding how Alberta’s performance compared to the other provinces while the UCP have been in power.

But I was curious regarding how Alberta has performed over a longer period regarding worker wages, as well as how those wages fared against inflation.

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First, to recap, here’s the situation in each province regarding weekly wages per the average worker, including overtime pay, as of December 2022.

AB$1,268.07
ON$1,197.94
NL$1,176.83
BC$1,153.32
SK$1,147.21
QC$1,129.54
NB$1,077.70
MB$1,073.01
NS$1,033.77
PEI$985.86

Unsurprisingly, Alberta had the highest average weekly wages in Canada. This is something Alberta politicians have been extolling for years.

But let’s look at how worker wages have changed over the last decade within each province.

Dec 2012Dec 2022Change% change
QC$831.32$1,129.54$298.2235.87%
ON$912.94$1,197.94$285.0031.22%
BC$872.40$1,153.32$280.9232.20%
NB$805.79$1,077.70$271.9133.74%
NL$931.92$1,176.83$244.9126.28%
MB$828.11$1,073.01$244.9029.57%
PEI$741.22$985.86$244.6433.01%
NS$799.50$1,033.77$234.2729.30%
SK$927.39$1,147.21$219.8223.70%
AB$1,081.54$1,268.07$186.5317.25%

Alberta’s at the bottom of the pack. Not only did the average worker see a smaller total increase in weekly wages over the last 10 years, compared to their fellow workers in other provinces, but the increase relative to 2012 wages was also the lowest.

In fact, the average worker in Newfoundland and Labrador saw their workers rise as a percentage of 2012 wages (35.87%) that was more than twice what workers in Alberta saw (17.25%).

It gets worse.

Here’s the consumer price index for each province, as of December 2022.

AB160.80
PEI158.80
NS156.40
SK155.70
MB155.50
ON154.80
NL154.60
NB153.40
QC149.00
BC147.10

The consumer price index measures how much consumers have to pay for certain goods. What we see here is that the CPI is highest in Alberta. That means it costs more to live here.

Now, check out how the consumer price index has changed over the last 10 years in each province.

Dec 2012Dec 2022Change% change
MB120.20155.5035.3029.37%
AB126.50160.8034.3027.11%
PEI124.90158.8033.9027.14%
ON121.30154.8033.5027.62%
SK123.30155.7032.4026.28%
NB121.20153.4032.2026.57%
NS124.90156.4031.5025.22%
NL123.50154.6031.1025.18%
BC117.00147.1030.1025.73%
QC120.50149.0028.5023.65%

Over the last decade, Alberta saw the highest increase to its CPI than in any other province except Manitoba. However, as a percentage increase (otherwise known as inflation), Alberta’s was the fourth largest.

Alberta’s inflation grew faster since 2012 than every other provinces except Manitoba, Ontario, and Prince Edward Island.

But we’re not done yet.

Watch what happens when we compare the percentage increase in wages to the percentage increase in CPI (or inflation).

WagesCPIDifference
QC35.87%23.65%12.22%
NB33.74%26.57%7.18%
BC32.20%25.73%6.47%
PEI33.01%27.14%5.86%
NS29.30%25.22%4.08%
ON31.22%27.62%3.60%
NL26.28%25.18%1.10%
MB29.57%29.37%0.21%
SK23.70%26.28%-2.57%
AB17.25%27.11%-9.87%

Of the 10 provinces in Canada, 8 saw wages increase more than inflation. That means, theoretically, that workers in those provinces should be able to still afford that same basket of goods they would’ve bought in December 2012.

However, in two provinces, inflation grew faster than wages: Saskatchewan and Alberta.

And of those two, Alberta saw the largest discrepancy between wages and inflation. Over the last 10 years, wages for the average worker in Alberta grew by only 17.25%. However, inflation was 27.11%.

That’s a difference of nearly 10 full percentage points.

What good is it for workers to have the highest wages in the country if it costs more to live here and it’s getting even more expensive every year?

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By Kim Siever

Kim Siever is an independent queer journalist based in Lethbridge, Alberta. He writes daily news articles, focusing on politics and labour.

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