Should we change jobs to break inflation? Not necessarily.

Sorry to add, but inflation has caused consumer prices in Canada to jump by 6.8% in 2022, and current forecasts also call for growth of around 7% in 2023. Misery. The problem is that wages aren't rising as fast in Quebec and Ontario. So do you have to change jobs to improve conditions and maintain purchasing power? 

The short answer is: if you're aiming for at least a 7% increase, then yes, you'll probably have to move. Because employers also have to contend with the effects of inflation, and economic conditions rarely allow for increases of this proportion. 

According to figures compiled by the Conseil du patronat du Québec, average wage increases for private-sector employees in Quebec and Ontario were 4% and 3.8% respectively in 2022, well below the 7% inflation rate. Forecasts predict an average of a tenth of a percentage point higher for both provinces this year... Not much to write home to your favorite financial advisor about, then, with such a marginal increase.

That's why a career change may be in order if the objective is to obtain a salary that will compensate for inflation.

The success of this plan hinges on the ability to convert experience into an opportunity for advancement, and to put one's expertise to good use in a hiring process that will lead to a higher position on the organizational chart of a new organization. 

It's not a foregone conclusion, and it's not for everyone. After all, you shouldn't underestimate the time it takes to put together your application, participate in the process and make yourself available for face-to-face meetings, among other things. It's a process that also comes with increased stress, which shouldn't be overlooked. 

Rather than impose this tedious operation on themselves, others will opt for stability and try to negotiate other benefits with their employer to avoid moving. Why not ask for an extra week's vacation?

Because even if a job is sometimes compared to a simple business relationship, reality is more intricate than this cold contractual relationship. And even if inflation seems out of control while the shadow of a recession looms, longevity and stability are assets to consider. 

Will you change jobs?

The comments contained herein are a general discussion of certain issues intended as general information only and should not be relied upon as tax or legal advice. Please obtain independent professional advice, in the context of your particular circumstances. This blog was written, designed and produced by Pierre Dauth, Investment Funds Advisor with Investia Financial Services Inc., and does not necessarily reflect the opinion of Investia Financial Services Inc. The information contained in this blog comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any securities.  Mutual Funds are offered through Investia Financial Services Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments.  Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.