2026 is a new year. Recruitment agencies in Toronto are busy looking at the year that was and analyzing the things to come. A recent StatsCan survey has found that more than one-third of businesses plan to increase their wages in the next year. This is great news for employees. It’s also necessary for many employers to recruit and keep their top people.
In this blog:
- Survey result: 39% of businesses will increase wages over the next 12 months
- What industries will see the biggest wage increases in Canada in 2026?
- Why are companies planning to increase wages?
Survey result: 39% of businesses will increase wages over the next 12 months
A large percentage of Canadian businesses plan to increase wages in the next year. A StatsCan survey found that 39% plan to increase their compensation budgets. Another 44.5% plan to keep wages the same. Only 5% anticipate decreasing wages.
How much do companies plan to increase rates? According to the report,
“Among those expecting to raise wages, the majority (60.5%) anticipate the rate of increase to be similar to the previous year, while 17.0% expect a slower rate of increase and 15.3% a faster one.”
What industries will see the biggest wage increases in Canada?
Not all companies will increase wages at the same rate. The survey found that the businesses most likely to expect wage increases were in:
- Manufacturing (48.6%)
- Accommodation and food services (46.9%)
- Retail trade (46.3%)
Why are companies planning to increase wages?
Companies increasing wages is nothing new. But the reasons for doing so often change year to year. In 2026, the ongoing effects of inflation, a tight labour market and a desire to retain talent are reasons for increased talent budgets.
The top 5 reasons given by businesses for raising wages were:
- The current rate of inflation (58.7%)
- The need to retain talent (49.1%)
- Minimum wage legislation
- Recruitment needs
- A tight labour market
A final word about wage increases in Canada in 2026
As 2026 unfolds, rising wages signal a competitive labour market in Canada, making it more important than ever for employers to plan strategically and for employees to understand their growing value in an evolving economy.
Looking for strategies to retain your top people and recruit top talent? Give us a call!
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