As it has risen to levels unseen in recent memory, inflation has become the hot economic topic of the day. Whether in reference to groceries, gasoline, or concert tickets, nearly everyone is talking about the rapid pace of price increases throughout the Canadian and global economies. When it comes to the cost of veterinary labor, inflation is running even hotter, as the persistently elevated demand for veterinarians outstrips a relatively consistent supply.
Data on help wanted advertisements placed for associate veterinarians in The Canadian Veterinary Journal, and on the CVMA’s website attest to this strong demand. From a prepandemic figure that fluctuated around 100 advertisements per month, the number placed surged to near 200, before retrenching to a 150 level (Figure 1).
Figure 1.
Monthly number of help wanted advertisements for associate veterinarians placed with CVMA, 2018 through 2022.
On the supply side, there have been few new developments. There is little to suggest that an influx of veterinary graduates, migrants to Canada, or re-entries to clinical practice is just beyond the horizon. Thus, as continued robust demand outweighs a steady supply, the incomes on offer to veterinarians have risen.
This acceleration in compensation can be demonstrated using the 2022 Provincial Surveys of Compensation and Benefits for Associate Veterinarians. From 2021 to 2022, the national average compensation for a full-time associate veterinarian increased by 12%, from $96 864 to $108 446. This was nearly double the economy-wide inflation rate of 6.8%, over the same interval.
Looking back across the last 5 years, associate veterinarian compensation has significantly outpaced the overall increase in the cost of living. From 2018 to 2022, the national weighted average annual compensation cumulatively increased by 28.2%, whereas inflation, as measured by Statistics Canada’s Consumer Price Index, rose by 15.4%. Had associate wages merely kept pace with inflation, 2022’s average compensation would have been $97 578, more than $10 000 lower than the actual figure (Figure 2).
Figure 2.
National weighted average annual compensation for full-time associate veterinarians, and inflation adjusted national weighted average, 2018 through 2022.
As in previous years, the wage escalation is a result of multiple factors. On one side, employers are offering higher wages in advertisements to help them stand out from the crowd and recruit associate veterinarians. Another important factor, however, is employers providing large pay increases to their current employees, to help improve retention and reduce attrition of their associate veterinarians.
Assessing the provinces, nearly all of them, except Prince Edward Island and Manitoba, saw median associate veterinarian compensation climb from 2021 to 2022. Many posted double-digit percentage increases, such as Ontario (15%), British Columbia (14.5%), Alberta (10.6%), and Quebec (10%) (Table 1).
Table 1.
Median annual compensation for full-time associate veterinarians, stratified by province, and nationally weighted average, from 2018 to 2022.
| 2018 | 2019 | 2020 | 2021 | 2022 | |
|---|---|---|---|---|---|
| Canada | $84 589 | $89 840 | $91 443 | $96 864 | $108 446 |
| Newfoundland and Labrador | $106 000 | $105 000 | $84 000 | n/a | $125 000 |
| Prince Edward Island | $66 000 | $75 900 | $83 500 | $82 750 | $82 000 |
| Nova Scotia | $80 000 | $80 000 | $83 000 | $90 000 | $92 500 |
| New Brunswick | $76 000 | $74 500 | $75 000 | $93 500 | $100 000 |
| Quebec | $79 500 | $85 000 | $85 000 | $90 000 | $99 000 |
| Ontario | $85 000 | $90 000 | $92 500 | $100 000 | $115 000 |
| Manitoba | $87 500 | $85 000 | $95 000 | $100 000 | $100 000 |
| Saskatchewan | $81 000 | $85 000 | $87 500 | $90 000 | $95 000 |
| Alberta | $90 000 | $95 000 | $95 400 | $99 500 | $110 000 |
| British Columbia | $90 000 | $100 000 | $100 000 | $100 000 | $114 500 |
n/a — Not available.
As inflation has gripped the Canadian economy, compensation has become increasingly important to associate veterinarians as they assess employment. Respondents to the Provincial Associate Surveys were asked if they had been in their current position of employment for 2 years or fewer, and what were the determining factors in their selection. Although work-life balance retained top spot as the single most important factor, compensation/benefits climbed by 5 percentage points, with nearly half indicating this as a crucial component (Figure 3).
Figure 3.
Percentage of respondents indicating which factors had a determining role in their job selection decision.
For hospitals seeking to hire or retain an associate veterinarian, the advice to be gleaned from these data is to focus on schedule and compensation to craft a compelling and competitive offer on both fronts. A position providing an associate veterinarian with a strong income (compared to provincial medians), and a good work-life balance (compared to provincial median annual hours worked, and on-call responsibilities) will have the best chance of success.
Footnotes
This article is provided as part of the CVMA Business Management Program, which is co-sponsored by IDEXX Laboratories, Petsecure Pet Health Insurance, Merck Animal Health, and Scotiabank.
Use of this article is limited to a single copy for personal study. Anyone interested in obtaining reprints should contact the CVMA office (hbroughton@cvma-acmv.org) for additional copies or permission to use this material elsewhere.