Canadian Industry Statistics (CIS)
Salaries and Wages
Furniture and Related Product Manufacturing (NAICS 337)
Under this topic you will find information on total and average compensation
paid in Canada's Furniture and Related Product Manufacturing (NAICS 337) subsector,
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.
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: 1998-2007*
Furniture and Related Product Manufacturing (NAICS 337)
Type of Employee |
Value in
$ billions |
% of Total
2007 |
CAGR**
1998-2007 |
% Change
2006-2007 |
1998 |
2007 |
|
|
Production |
1.7 |
2.4 |
68.7% |
3.0% |
-2.1% |
Administrative |
0.6 |
1.1 |
31.3% |
6.6% |
1.1% |
| |
Total |
2.3 |
3.4 |
100% |
4.0% |
-1.1% |
In the Furniture and Related Product Manufacturing subsector, total salaries and wages paid to employees have
increased from $2.3 billion in 1998 to
$3.4 billion in 2007, an average annual
increase of 4.0%. Between 2006 and 2007, salaries
and wages decreased by 1.1%.
In comparison, for the Manufacturing sector, salaries and wages paid out
increased by 1.5% per year since 1998 and
decreased by 1.5% over the course of 2006-2007.
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 Furniture and Related Product Manufacturing subsector production
worker wages increased from $1.7 billion in 1998
to $2.4 billion in 2007 or at an average rate of
3.0% per year. Between 2006 and 2007 production worker wages
decreased by 2.1%.
The salaries and wages of administrative workers, on the other hand,
grew from $567.7 million to $1.1
billion over the 1998-2007 period, yielding an average annual
increase of 6.6%. Between 2006 and 2007, these
salaries and wages increased by 1.1%.
Total Wages Paid By Employment Type: 1998-2007
Furniture and Related Product Manufacturing (NAICS 337)
In comparison, when looking at the Manufacturing sector over the years
since 1998, salaries and wages paid to production workers
increased by an average of 0.7% per year, whereas
those paid to administrative workers increased by
3.2%. Over the course of the most recent year compensation
for production workers decreased by 1.6% while
salaries and wages for administrative workers decreased by
1.2%.
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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: 2007
Production vs Administrative Employees - Share of Total
Furniture and Related Product Manufacturing (NAICS 337)
Share of Total Employment
Share of Total Compensation
For the Furniture and Related Product Manufacturing subsector in 2007, the 20.9% of employees
that were administrative workers received 31.3% of all the salaries
and wages paid out by establishments to their workforce.
In the case of the Manufacturing sector in 2007, the
25.9% of employees that were administrative workers received
34.8% of all the salaries and wages paid out by establishments to
their workforce.
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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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: 1998-2007*
Furniture and Related Product Manufacturing (NAICS 337)
Type of Employee |
Value in $ |
CAGR**
1998-2007 |
% Change
2006-2007 |
1998 |
2007 |
|
|
Production |
25,212 |
31,286 |
2.2% |
1.1% |
Administrative |
46,001 |
53,832 |
1.6% |
-0.2% |
| |
All
Employees |
28,352 |
36,001 |
2.4% |
1.2% |
The average annual compensation for employees of the Furniture and Related Product Manufacturing subsector
rose from $28,352 in 1998 to $36,001 in
2007, or at an average rate of 2.4% per year. There was
an increase of 1.2% over the 2006-2007 period.
In comparison, for the Manufacturing sector, average annual compensation
rose from $38,848 to $48,674 between
1998-2007, or at an average annual rate of 2.3%. Over the most
recent year, average compensation increased by
1.1%.
Average Annual Salaries By Employment Type: 1998-2007
Furniture and Related Product Manufacturing (NAICS 337)
The average annual wages for production workers in the Furniture and Related Product Manufacturing subsector
grew at an average annual rate of 2.2% over the
1998-2007 time period, and increased by 1.1% over the
course of the latest year. In the case of administrative employees, the average
annual salaries and wages increased by 1.6% per year on
average between 1998 and 2007 and decreased by 0.2%
between 2006 and 2007.
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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 1998-2007.
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 workers
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.