Employers in Quebec are expecting salaries will go up by an average of 2.6 per cent next year.

Salaries increased this year in Quebec by 2.4 per cent which means for two years in a row Quebec's rate of increase is the highest in the country.

The Quebec Council of Employers (Conseil du Patronat) based its prediction on data collected from Quebec human resources consulting firms.

Part of the reason for the increase in wages is the continued drop in Quebec's unemployment rate, which is the lowest it's been in the 40 years Statistics Canada has been recording data on the topic.

The CPQ expects increasing salaries to an average annual income of $40,000 will cost employers an extra $156 per employee.

Yves-Thomas Dorval, president of the CPQ, says Quebec employers pay more in taxes and employee costs than their counterparts in the rest of the country, which he says makes it harder for Quebec firms to compete.