Historically, worker shortages have spurred increases in wages. The fact that significant wage growth hasn’t materialized this time around remains More Canadians a puzzle for economists and policy makers. Our take is that, while labour “ markets continue to look like those at the beginning of the last expansion have been leaving in 2004, changes in demographics and behavior are affecting the wage their current jobs – a response. A decrease in labour turnover – Canadians’ reluctance to leave factor that suggests their jobs for greener pastures – is one factor that appears to have limited wage growth. However, in the past year, more Canadians have been leaving stronger wages their current jobs – a factor that suggests stronger wages ahead. ahead.” 270,000 Throughout the 2020s more than 270,000 people will retire from the Canadian labour market every year. That means that 2019 is the year businesses have to get serious about attracting and keeping younger workers. More Canadians are leaving jobs because they’re unhappy % of labour force 0.6 0.5 0.4 0.3 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Year to date Unemployed people who left their jobs because they were ‘dissatisfied’ as % of labour force Source: Statistics Canada, RBC Economics Research RBC Economics Research | Navigating 2019 - 9 big insights for the year ahead | January 2019 12