Many people are unhappy with how much they get paid at work


Inflation makes people unhappy with the money they earn.

Year-on-year wage growth is hovering around 5% and inflation recently hit 6.9%. The gap between wage increases and inflation makes people feel poorer, but there is another side to our dissatisfaction with wages.

A tight labor market has created a strong demand for workers in some sectors, and employers have in some cases responded by offering much higher wages to attract and retain workers. Stories of people negotiating better wages at their current workplace or a new one are circulating widely. A new poll suggests that many people are not benefiting from this trend and are unhappy with it.

The poll, conducted in October by Leger, asked its 1,534 participants if they considered themselves to be receiving fair compensation. Only 45% said yes, while 43% said no and the rest were unsure or said the question did not apply to them.

The high level of dissatisfaction with pay helps explain another survey finding: 84% of participants said they support the idea of ​​a pay transparency law requiring employers to disclose pay scales. wages in job postings. Salary disclosure is making headlines because New York City introduced a law on Nov. 1 that requires employers to list salary or hourly wages in job postings.

Pay transparency is seen as a way to improve pay equity in the workplace. In the poll, 61% said it would increase pay equity for gender and racial minorities. Forty-seven percent of participants said they would be comfortable having their salary information made available to others.

Compensation becomes a hot topic at an inopportune time. Rate hikes used by the Bank of Canada to fight inflation are slowing the economy and a recession is possible next year. Although labor shortages persist in some sectors, some employers will consider downsizing. Check out the latest edition of our stress test personal finance podcast for some thoughts on how to navigate today’s job market if you’re looking for a higher salary.

If you’re considering changing jobs for better pay, you’re in good company. The Leger poll suggests that 24% of people in the workforce plan to quit their job in the next year, and 23% aren’t sure.

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Rob’s Personal Finance Reading List

Women who earn more than their partners

I read it cover to cover because the stories are so interesting – 21 women talk about what it’s like to make more money than their partner. Generally good, but sometimes there are problems. Now for a bizarre aspect of today’s job market – employers often can’t find qualified candidates. Suggests more bargaining leverage for job seekers over salary, benefits, and flexibility of working from home.

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A recent graduate shares his difficulties paying off his student loan and credit card bills. Some smart suggestions at the end of a credit counselor.

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A list of promises made by the federal government on housing, taxes, and other financial matters, with notes on the status of these proposals.

Buy and hold stocks forever

An investor blogger takes a look at some blue chip stocks with a history of paying dividends. A good starting point for people looking to build a stock portfolio, and more experienced investors may want to check what they own against this list. Now for a lesson on the difficulty of picking stocks, with Meta Platforms (formerly Facebook) and other tech stocks used as an example.

Ask Rob

Q: I have worked hard over the past few years to build up an emergency fund and plan to reach my six month reserve goal by the end of the year. I found lots of advice online for setting up a fund, but not much advice on what to do with the money once I’ve reached that goal. Can you provide advice on this? I was wondering what is the best type of account to hold these funds and if some of it should be invested in short-term commitments, or just never touched unless necessary?

A: First of all, hearty congratulations on hitting the magic six-month mark for your emergency fund. Unbelievable. Overall, the most important goals for money in an emergency fund are security, easy availability, and a decent return. A high-interest savings account ticks those boxes, with rates as high as 3.75% right now. For larger emergency funds, it may be a good idea to put a segment into a cashable GIC if you get a competitive rate.

Do you have a question for me? Send me. Sorry I can’t answer each one personally. Questions and answers are edited for length and clarity.

Today’s financial tool

Try if you’re looking for preferred shares. There is a premium version of the site, but some information is free.

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