TELUS Health survey reveals skilled talent demand boosts salaries as inflation slows across Canada
TELUS Health's 42nd annual Salary Projection Survey forecasts a 3.45 percent increase in average base salaries for non-unionized Canadian workers in 2025.
This is the first time in four years that salary growth is expected to surpass inflation, with the increase driven by persistent labour shortages. The Bank of Canada recently reported a 2.0 percent inflation rate, making this projected salary increase significantly higher.
Guylaine Béliveau, National Practice Leader for Compensation Consulting at TELUS Health, explained, “The persistent demand for skilled talent is driving robust salary growth into 2025, despite easing inflationary pressures on employers.”
Béliveau emphasized that declining inflation would allow employees to regain purchasing power, improving financial wellbeing and workplace morale.
The survey, which collected data from over 355 organizations across various Canadian industries, shows regional variations in salary projections for 2025.
British Columbia is expected to lead with a 3.60 percent increase in average base salaries, followed by Alberta at 3.54 percent and New Brunswick at 3.50 percent. In contrast, Quebec's salary growth, which was 3.85 percent in 2024, is projected to slow to 3.41 percent in 2025.
Nova Scotia continues to report the lowest projected salary increases, with 2.94 percent growth expected for both 2024 and 2025.
In terms of industries, the Construction sector is expected to see the highest salary growth at 4.13 percent, followed by Real Estate (3.92 percent) and Business Services (3.90 percent).
Public Administration is forecasted to have the lowest salary increase at 2.75 percent, replacing Information Technology, which held that position in 2024.
The projected increase in salary structures for 2025 stands at 2.72 percent, slightly lower than the 2.89 percent increase recorded in 2024. Employers' priorities remain focused on employee engagement, leadership development, and upskilling.
In particular, training and development programs are gaining importance as employers look to cultivate current and future leaders.
Many organizations are also addressing financial wellbeing, with 59 percent implementing or planning to implement programs to enhance employee financial health. These initiatives include healthcare spending accounts (24 percent), financial literacy education (20 percent), and group RRSPs (18 percent).
This year's survey also highlights the increasing adoption of artificial intelligence (AI) among Canadian companies.
Nearly 74 percent of surveyed organizations are either exploring or seriously considering AI solutions to improve operational efficiency in 2025, reflecting AI’s growing role in workplace productivity.
The need for a holistic approach to workplace wellbeing is becoming more critical, as highlighted by last year's TELUS Financial Wellbeing special report.
According to the report, 25 percent of Canadian workers are concerned about their ability to retire, and 30 percent prioritize financial planning in their benefits packages. Many employees believe employers should offer retirement savings options to improve financial security.
Philip Mullen, vice president of Employer Solutions Consulting at TELUS Health, stated, “In today's evolving job market, employees are seeking more than just competitive salaries. They're looking for employers who offer comprehensive support for their financial, physical, and mental wellbeing.”
He emphasized that organizations that partner with benefits administrators to provide holistic packages—integrating retirement planning, investments, and health services—are likely to see better recruitment, retention, and productivity outcomes.
