Employers claim that the post-pandemic labour shortage has led to over-compensation for recent hires. This is a common misconception. Here’s why: after tax median family income rose by 2.5% in 2022.
However, after adjusting for inflation we can see that:
Median family income was 4.0% lower year over year
Young family income was 5.2% lower year over year
Single parent income was 8.5% lower year over year.
Arguments that terminated employees have had some kind of windfall in the last few years don’t resonate. When you see the bias impact on the most vulnerable households, you have to wonder why employers continue to play hardball with terminated employees searching for comparable employment in a recessionary economy.
Rates aren’t coming down because the underlying economic metrics in Ontario are strong…and Courts will hear evidence about the lack of available alternative employment and the circumstances particular to the plaintiff employee.
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