Unionized workers achieved largest wage gains in a decade in 2025

Federal data show average annual wage increases in unionized settlements reached 3.9% between Jan. 1 and Aug. 31, 2025, the highest since at least 2016, with stronger gains in the private sector.

Federal Employment and Social Development Canada updated data show unionized workplaces negotiated larger wage increases in early 2025. Between Jan. 1 and Aug. 31, the average annual wage increase in settlements was 3.9 per cent. That level was the highest since at least 2016 and exceeded inflation. Private-sector unions accounted for much of the 2025 gains. Key facts: - Average annual wage increase across private and public sector union settlements was 3.9 per cent between Jan. 1 and Aug. 31, 2025. - Private-sector union settlements averaged 4.2 per cent, while public-sector settlements averaged 3.4 per cent. - First-year wage increases in new private-sector collective agreements averaged 7 per cent. - There were 193 work stoppages in the first 10 months of 2025, down from 272 in both 2023 and 2024. - About 30 per cent of the Canadian workforce is unionized, and the private-sector unionization rate was 15.5 per cent as of 2023. Summary: Negotiated wage increases in 2025 were higher than pre-pandemic levels and exceeded inflation, driven largely by private-sector settlements. More detailed provincial data are limited outside Ontario, and some ESDC strike data were restored late in 2025 after a temporary removal. Undetermined at this time.