Canadian payroll employment falls as wages rise 3.7% in August
Wages climb, but the picture is uneven
Average weekly earnings reached $1,355 in August, up 0.5% month over month and 3.7% year over year – an acceleration from the 3.2% annual gain recorded in July. That pace outstrips recent inflation readings and, on the surface, suggests strengthening household purchasing power.
The regional breakdown, however, reveals considerable variation. Alberta posted average weekly earnings of $1,404.59, up 3.5% from a year earlier, while Ontario recorded $1,395.60, up 3.9%. British Columbia came in at $1,369.91, a 5.2% annual gain – the strongest among the major provinces. Quebec, by contrast, grew more modestly at 1.7%, with average earnings of $1,293.22. New Brunswick led all provinces in wage growth at 6.0%, reaching $1,267.77.
As Wealth Professional has previously reported, Canadian wage growth has been holding steady at around 3% for job-stayers, while workers who switched employers earned notably more – a dynamic that continues to shape household income trajectories across the country.
Sectors shedding workers
Payroll employment declined in 10 out of 20 sectors in August. Public administration led the drop, falling by 22,300 (-1.6%), followed by accommodation and food services (-6,800; -0.5%), information and cultural industries (-5,000; -1.4%), construction (-4,500; -0.4%), and retail trade (-4,400; -0.2%).
The two-month decline in public administration was concentrated in federal government public administration, which fell by 23,400 (-6.0%) from June to August, largely reflecting temporary staffing activity related to the 2026 Census.
