US wages trail inflation, but Canada’s squeeze looks worse

Crofoot pointed to law as part of the explanation. “In terms of statutory compensation elements, Canada is much stronger across the board on other medical, retirement, leave pay,” she said. “So Canada sort of ticks the box on all of that, whereas the US has a lot more to make up because we don’t have all of that.”

Canada wins one category: career development in the digital sector, mentioned in 20.2 percent of Canadian postings against 17.4 percent of US postings. “Canadian employers are getting the message that they need to invest in their employees in this regard,” Crofoot said.

Follow the 2027 money

Neither market is planning broad raises, extending a pattern of flat pay increases through 2026 [add /us internal link 2: 2027 pay raises or merit budgets story, anchor of five or more words]. In the US professional sector, Randstad’s data shows merit budgets concentrating on financial planning and analysis (FP&A) and high-impact revenue roles at 3.8 percent to 4.6 percent, while corporate sales and administrative staff get 1.2 percent to 2.6 percent, topped up by variable commissions. In Canada, skilled trades base adjustments range from 2.9 percent to 3.9 percent, and shortages of Red Seal tradespeople, certified under Canada’s interprovincial trades standard, push employers toward custom craft rates and shift differentials [name Randstad report, date and link].

Marie-Noëlle Morency, head of brand, content and communications at Randstad North America [add location], said employers now aim money at scarcity, including artificial intelligence (AI) and tech skills. “They may not want to spread raises evenly, but targeting money at some employees with niche skills, for example, in AI and tech, in healthcare and skilled trades, where we actually see skill shortages,” she said.

Pay transparency adds a Canadian bill

Since Jan. 1, 2026, Ontario has required employers with 25 or more employees to publish expected pay, or a range no wider than C$50,000, in public job postings, with exemptions for higher-paid roles, and to disclose whether they use AI to screen, assess or select applicants. Randstad’s outlook estimates that emerging provincial pay transparency rules push Canadian organizations to set aside 2.0 percent to 2.6 percent of payroll to fix wage compression, meaning newer hires earning close to or more than longer-serving staff, before they post ranges publicly.

The US has no federal posting rule, but 27 jurisdictions had pay transparency laws as of July 29, 2026, according to Brightmine. [add /us internal link 3: pay transparency story, anchor of five or more words]

Crofoot advised triage over blanket correction. “It’s being really pragmatic about it, identifying again, critical roles, critical geographies, even down to critical stores,” she said.

The playbook splits at the border. US postings carry more of the benefits pitch because Canadian law already covers more of the basics, according to Crofoot. Canadian employers need compression audits before posted ranges, and digital career development keeps their edge.

Jeff Johnson, head of marketing at Randstad North America [add location], summed up the shift for both markets. “Maybe across-the-board raises aren’t the way to go,” he said. “Maybe it’s setting aside discretionary funds for critical skill shortages.”