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Alberta has the least optimistic employers in Canada when it comes to one leading economic indicator: increases in salaries in 2017.

Employers in Wild Rose Country are expecting salaries to rise by an average of 1.4 per cent next year, a far cry from the national average of 2.1 per cent, an annual survey from human resource group Morneau Shepell suggests.

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The main driving factor behind the less-than-optimistic appraisal of the province’s economy, is, as you may have already guessed, the sluggish resource industry.

Paula Allen, vice-president of research and integrative solutions at Morneau Shepell, said Alberta’s increase may not sound like much but, “there is an increase and that’s not necessarily something one could expect particularly with an economic downturn.”

“The reality is that dominant industries impact everything. It’s not just people in that industry but people in support of the industry,” Allen said.

The annual survey, Trends in Human Resources, showed news was better for our neighbours to the west, with British Columbia employers expecting an increase of 2.6 per cent in 2017. It was also good news in Manitoba (2.5), Quebec (2.3) and Ontario (2.1).

Saskatchewan faces a similarly dour outlook to Alberta, with employers expecting a 1.4-per-cent increase in payroll.

“With low oil prices and slow economic growth, employers continue to be cautious,” said Michel Dube, a principal in Morneau Shepell’s compensation consulting practice.

“Our survey showed that actual salary increases in this year averaged just 2.1 per cent and employers are expecting to stay at this level for 2017 as well. These are the lowest expected salary increases that we’ve seen in more than two decades.”

jgraney@postmedia.com

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