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Alberta’s wage-growth problem is dragging down the rest of Canada Add to ...

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It’s not quite accurate to say that Canada has an income-growth problem. Alberta has the income-growth problem. Canada has an Alberta problem.

It has been one of the great disappointments of Canada’s ongoing economic recovery that even as the economy has achieved modest growth, wages have been left behind. And the problem has been getting worse rather than better: A Statistics Canada report last week noted that Canadians’ average year-over-year earnings growth has slipped from 2.6 per cent in 2014 to a tepid 1.8 per cent in 2015, to a puny average of 0.4 per cent in the first half of 2016. Its a distressing signal about the health of the labour market and the well-being of Canadian households. But while this trend may pose a national dilemma, it’s far from a national phenomenon.

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