Canadian Industry Statistics (CIS)
Salaries and Wages
Manufacturing (NAICS 31-33)
Under this topic you will find information on total and average compensation
paid in Canada's Manufacturing (NAICS 31-33) sector,
broken down between production and administrative employees. This information
can be used as a benchmark to evaluate the salary and wage structure of your
business and may help you to identify important trends in how labour is being
used in the manufacturing process.
Average annual salaries for both production and administrative workers can
be calculated by dividing the total wages paid by the number of employees.
Average Annual Salaries by Type of Employee: 2001-2010*
Manufacturing (NAICS 31-33)
Type of Employee |
Value in $ |
CAGR**
2001-2010 |
% Change
2009-2010 |
2001 |
2010 |
|
|
Production |
37,025 |
43,936 |
1.9% |
1.4% |
Administrative |
57,945 |
64,951 |
1.3% |
-1.1% |
All
Employees |
40,991 |
49,553 |
2.1% |
0.5% |
The average annual salaries for employees of the Manufacturing sector
rose from $40,991 in 2001 to $49,553 in
2010, or at an average rate of 2.1% per year. There was
an increase of 0.5% over the 2009-2010 period.
Average Annual Salaries By Employment Type: 2001-2010
Manufacturing (NAICS 31-33)
The average annual wages for production workers in the Manufacturing sector
grew at an average annual rate of 1.9% over the
2001-2010 time period, and increased by 1.4% over the
course of the latest year. In the case of administrative employees, the average
annual salaries and wages increased by 1.3% per year on
average between 2001 and 2010 and decreased by -1.1%
between 2009 and 2010.
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Initially we examine the total salaries and wages paid, including a
breakdown of the amounts paid to production workers
and administrative
workers.
Wages and Salaries Paid by Type of Employee: 2001-2010*
Manufacturing (NAICS 31-33)
Type of Employee |
Value in
$ billions |
% of Total
2010 |
CAGR**
2001-2010 |
% Change
2009-2010 |
2001 |
2010 |
|
|
Production |
58.8 |
47.6 |
65.0% |
-2.3% |
2.5% |
Administrative |
21.5 |
25.7 |
35.0% |
2.0% |
-0.7% |
Total |
80.3 |
73.3 |
100% |
-1.0% |
1.4% |
In the Manufacturing sector, total salaries and wages paid to employees have
decreased from $80.3 billion in 2001 to
$73.3 billion in 2010, an average annual
decrease of -1.0%. Between 2009 and 2010, salaries
and wages increased by 1.4%.
Changes in total salaries and wages depend, for the most part, on the
relative fortunes of particular industries, as some become more significant to
the Canadian economy and others decline in significance. This may be due to
changes in comparative advantage with other countries, shifts in consumer
tastes or changes in the cost or availability of supplies, to name a few
factors.
When broken down by type of employee, in the Manufacturing sector production
worker wages decreased from $58.8 billion in 2001
to $47.6 billion in 2010 or at an average rate of
-2.3% per year. Between 2009 and 2010 production worker wages
increased by 2.5%.
The salaries and wages of administrative workers, on the other hand,
grew from $21.5 billion to $25.7
billion over the 2001-2010 period, yielding an average annual
increase of 2.0%. Between 2009 and 2010, these
salaries and wages decreased by -0.7%.
Total Wages Paid By Employment Type: 2001-2010
Manufacturing (NAICS 31-33)
In comparison, when looking at the @TOPdesc_e@ goods-producing industries over the years
since 2001, salaries and wages paid to production workers
@TOPS1prd_wag_lg_lyr@ an average of @TOPF4prd_wag_lg_lyr@% per year, whereas
those paid to administrative workers @TOPS11adm_wag_lg_fyr@
@TOPF4adm_wag_lg_fyr@%. Over the course of the most recent year compensation
for production workers @TOPS1prd_wag_sg_lyr@ @TOPF4prd_wag_sg_lyr@% while
salaries and wages for administrative workers @TOPS1adm_wag_sg_lyr@
@TOPF4adm_wag_sg_lyr@%.
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Compensation packages can fluctuate in response to a number of factors,
including changes in orders received, revenues, manufacturing costs,
technology, and the labour market. However, compensation for production and
administrative workers may not change at the same rate, as establishments
within an industry may respond to the dynamics of the marketplace in various
ways.
The percentage share of salaries and wages paid to production or
administrative workers can be compared to their share of the total workforce.
Not surprisingly, the share of salaries and wages for administrative workers is
often higher than their share of the total workforce, as a large proportion of
administrative employees are managers and professionals.
Comparison of Employment and Compensation: 2010
Production vs Administrative Employees - Share of Total
Manufacturing (NAICS 31-33)
Share of Total Employment
Share of Total Compensation
In the Manufacturing sector, 26.7% of all employees that do not work in
direct relation with the Manufacturing section received 35.0% of all the wages
and salaries paid by institutions for workers.
The changing structure of the workforce in a given industry segment can
influence these ratios over time. The number of production workers in relation
to the total may decrease for a number of reasons, such as technological
advances or increased reliance on contract employees. Furthermore, the
composition of the administrative employee type may be evolving. These
non-production workers include managers, administrators and professionals such
as engineers and computer and research scientists. As modern industries become
more knowledge-based, this component of the workforce is growing in
significance for many manufacturing segments.
Both the workforce numbers and the compensation paid to employees are
dependent upon the revenues generated by the industry segment. While
adjustments in employment and compensation normally do not occur immediately,
over the longer term such adjustments are inevitable. In the shorter term, if
manufacturing revenues go down, immediate drops in the wage component of
operating costs are seldom seen. Similarly, if manufacturing revenues go up
dramatically, an immediate increase in wages would not likely follow.
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The data in this section come from Statistics Canada's Annual Survey of Manufactures and
Logging. Data are available for the years 2001-2010.
Due to methodological changes to the Annual Survey of Manufactures and
Logging (summarized in the Data
Sources section of this site), caution should be used when interpreting
trends in the data presented below.
Salaries and wages paid to employees are gross amounts before deductions for
income tax and employee contributions to various benefit plans. Vacation and
overtime pay are included, but not expenses associated with contract workers,
employment agencies or casual labour. Employer contributions to employee
benefit plans are also excluded.
In most cases, production
employees are paid according to an hourly wage. For administrative
workers, some are paid an hourly wage, and some earn an annual salary. In
this section the term compensation will be used interchangeably with
salaries and wages to refer to the total labour payments provided to
all employees regardless of their status as salaried or wage-earning
workers.
A comparison of salaries and wages with other operating costs (i.e.
materials, supplies, energy, water and vehicle fuel) is offered in the manufacturing costs section of
Canadian Industry Statistics. Information on number of workers
employed by type of employee is available in the employment section.