DETERMINING 2001 TO 2002 SALARY ADJUSTMENT
The market varies from year to year. After identifying your market salary for 2001 (Section 2), you should then examine the current market pressures on salaries.
The inflation factor adds an amount (usually expressed in percent)
to allow for the percentage increase in the Consumer Price Index (a restoration
of the value of the dollar concept). National CPI increases as well as those
for Alberta, Edmonton and Calgary are supplied below.
2. PRODUCTIVITY FACTOR (Increase in Gross Domestic Product)
In addition to the percentage increase in the CPI, an amount is added to allow for sharing in economic growth. (The Gross Domestic Product is now used as the main aggregate for measuring Canada's economic development.)
Note: In its September 2001 report, the TD Bank Financial Group reported an expected 4.0 percent real GDP growth in the Alberta economy for 2001, and a forecast 2.8 percent real GDP growth for 2002.
3. DEMAND FACTOR
It is anticipated in 2002, that there will be reasonably strong demand in Alberta for many of the engineering and goescience disciplines, despite considerable economic uncertainty in the world. While it is expected that demand factors for specific professions and industry sectors will vary considerably, an overall demand factor for the three professions is estimated at 1.0%. Members who are aware that their expertise is in short supply may want to uses a higher estimate for their demand factor; members who are aware that supply in their field of practice is abundant, may want to use a lower estimate.
FIGURE 11 - APEGGA Employer Salary Surveys Percent Change in Mean Salaries By Level of Responsibility 1991 to 2001) (click here to view)