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Average Salaries in Northwest Territories
Spanning over 1.3 million km2, the remote and rugged Northwest Territories is sparsely populated with only around 45,000 residents (Source). However, this northern territory contains rich natural resources like oil, gas, diamonds, gold and other minerals that drive much of the economy and job market.
Major industries in the Northwest Territories include mining, oil/gas extraction, construction, transportation, public administration, and tourism. This extensive guide will analyze average salaries across the Northwest Territories and examine the impact of location, experience level, education, in-demand roles, and other key factors on income potential.
With billions invested in natural resource reserves and infrastructure, the job market in the Northwest Territories offers competitive salaries to attract talent from southern Canada. Read on for a deep dive into average salaries in Northwest Territories and insights on maximizing earning potential.
Overall Average Salaries in Northwest Territories
According to 2022 data from ZipRecruiter, the mean income in the Northwest Territories is approximately $54,064 per year, based on average salaries in Northwest Territories across all occupations. This translates to an hourly wage of $25.99, weekly pay of $1,039, and monthly earnings of $4,505.
Compared to the national average annual salary of $54,450 across Canada, wages in the Northwest Territories are nearly on par at just 1% lower. However, incomes vary substantially based on specific job types, experience levels, location, education, and other factors that we’ll analyze in detail throughout this guide.
Examining the salary distribution provides further insights into the income landscape. While the median salary is $54,064, earnings at the 25th percentile are only $43,000, reflecting lower wages for entry-level positions. But at the 75th percentile, salaries jump to $64,250, indicating much higher pay for experienced professionals and specialized roles.
This wide bracket suggests strong opportunities exist to maximize salaries well above the territorial average by developing in-demand expertise and pursuing high-paying careers in industries such as mining, healthcare, construction, engineering, and more that thrive in the Northwest Territories economy.
Below is the summary for Average Salaries in Northwest Territories:
| Salary Metric | Amount |
| Annual Mean Salary | $54,064 |
| Hourly Mean Wage | $25.99 |
| Weekly Mean Pay | $1,039 |
| Monthly Mean Pay | $4,505 |
| 25th Percentile | $43,000 |
| 75th Percentile | $64,250 |
Average Salaries in Northwest Territories By City and Location
Location significantly impacts the average salaries in the Northwest Territories. The main population center is Yellowknife, the capital and largest city with around 20,000 residents.
However, economic activity related to natural resource extraction means smaller, more remote towns often offer substantially higher average wages to attract workers.
| City | Average Annual Salary |
| Fort McPherson | $68,395 |
| Tuktoyaktuk | $68,365 |
| Fort Liard | $61,750 |
| Fort Smith | $56,936 |
| Inuvik | $55,203 |
| Yellowknife | $53,986 |
| Hay River | $53,563 |
| Aklavik | $50,020 |
| Norman Wells | $48,864 |
Overall, location plays a major role in determining average salary differences across the expansive Northwest Territories. While the capital, Yellowknife, offers more amenities and diversified industries, smaller remote towns closely tied to natural resource extraction tend to pay substantially more on average.
How Experience Level Impacts Average Salaries in Northwest Territories
In addition to location and job type, years of relevant on-the-job experience are crucial factors that can significantly impact average salaries in Northwest Territories labor market. Entry-level positions tend to pay much less than roles that require more extensive expertise.
Employees in the territory with 2-5 years of experience in their field make a sizable 32% more on average than beginner professionals with less than 2 years of experience. Entry-level jobs report an average salary of $40,000 annually.
After reaching the 5 year experience milestone, salaries see another impressive jump. Professionals with over 5 years of specialized experience earn 36% higher pay on average than those with less than 5 years in their particular role or industry.
The salary growth continues and even accelerates the longer someone remains in a field and progresses up the ranks. Employees with over 10 years of experience report earning 21% more on average than those in the 5-10 year experience bracket.
For seasoned veterans with over 15 years of experience, salaries get another 14% boost compared to the 10-15 year group. The data indicates major potential for salary increases by levelling up expertise and spending many years perfecting abilities in a profession.
However, it’s worth noting that the degree of salary growth at each experience milestone can vary significantly between specific industries and occupations. For example, highly skilled fields like medicine and engineering often reward experience with bigger percentage jumps in pay, while entry-level salaries also tend to be higher.
| Experience | Average Salary Increase |
| 2-5 years | 32% above entry level |
| 5+ years | 36% above <5 years |
| 10 years | 21% above 5 years |
| 15 years | 14% above 10 years |
Overall, the numbers demonstrate how critical developing extensive, specialized expertise is for earning potential in the Northwest Territories job market. Salaries in the territory strongly correlate with greater levels of directly relevant on-the-job experience.
How Education Level Impacts Average Salaries in Northwest Territories
Along with experience, the highest level of education an employee has attained also significantly influences average salaries in Northwest Territories labour market. In general, higher levels of education open access to more skilled, advanced roles that tend to be higher-paying.
Professionals living in the territory who have obtained a post-secondary certificate or diploma report average salaries approximately 17% higher than those whose highest education credential is a high school diploma.
Earning an undergraduate bachelor’s degree provides an even bigger boost in income potential. Those with a bachelor’s degree tend to earn 24% more on average than coworkers whose highest education level is a certificate or diploma.
Pursuing further graduate education continues to lead to higher earning potential. Salaries for Master’s degree holders are 29% higher on average compared to professionals in equivalent roles who hold an undergraduate degree only.
At the highest level, doctorate degree holders report earning 23% more on average than those with Master’s degrees when comparing similar positions. This underlines the substantial lifetime value of investing the time and money to complete higher levels of post-secondary education.
However, as with experience levels, it’s important to note that the magnitude of the education-based salary differences observed can vary significantly across specific occupations and fields.
Some specialized industries like healthcare, engineering, law, and technology demonstrate especially large jumps in income for higher educational credentials, while increases may be more modest in less skilled occupations.
| Education Level | Average Salary Increase |
| Certificate/Diploma | 17% above high school |
| Bachelor’s Degree | 24% above Certificate/Diploma |
| Master’s Degree | 29% above Bachelor’s |
| Doctorate | 23% above Master’s |
Overall, the data clearly shows that earning advanced degrees, especially at the graduate level, significantly improves earning potential over the course of careers in the Northwest Territories economy. Educational advancement is key to maximizing salaries.
Average Salaries in Northwest Territories for Highest Paying Jobs
Now that we’ve examined how location, experience, and education impact average incomes, what are some of the highest-paying specific jobs and occupations found in the Northwest Territories labour market?
Based on an analysis of current job postings and reported salaries on ZipRecruiter, the top 10 highest paying occupations have average annual salaries well above the Northwest Territories mean of $54,064.
Many of the highest earners are in specialized medical and healthcare positions, which is understandable given the high demand and advanced skills required by these roles in the territory’s smaller remote communities.
| Occupation | Average Annual Salary |
| Orthopedic Surgeon | $381,295 |
| Anesthesiologist | $329,192 |
| Cardiologist | $325,325 |
| General Surgeon | $324,117 |
| Plastic Surgeon | $318,314 |
| Otolaryngologist | $315,617 |
| Orthodontist | $302,440 |
| Dermatologist | $286,820 |
| Pathologist | $279,065 |
| Neurosurgeon | $268,263 |
The data clearly shows that healthcare, particularly surgery and medicine, is an extremely lucrative and high-paying field in the Northwest Territories. The specialized skills, education, and high demand required by these positions result in some of the region’s highest average salaries.
Average Salaries in Northwest Territories for Most In-Demand Jobs
Beyond the top-paying roles we’ve examined so far, many of the most in-demand jobs in the Northwest Territories also boast strong average salaries comfortably above the territorial mean.
According to employment data from the Government of the Northwest Territories, some of the occupations with the highest number of job openings and top hiring demand include various medical professions.
| In-Demand Job | Average Annual Salary |
| Registered Nurse | $87,923 |
| Nurse Practitioner | $132,300 |
| Physiotherapist | $93,500 |
| Occupational Therapist | $87,500 |
| Secondary School Teacher | $71,500 |
| Mining Engineer | $82,979 |
| Electrical Engineer | $74,800 |
| Civil Engineer | $76,300 |
| Long-Haul Truck Driver | $51,500 |
| Heavy Equipment Operator | $55,100 |
| Trades Helper | $41,300 |
In summary, many of the most active and fastest-growing occupations in the Northwest Territories job market tend to provide competitive, above-average salaries reflecting high labour demand in key industries like infrastructure, resource development, healthcare, construction, and more.
Read more: Group Critical Illness Insurance for Engineers in Canada
Gender Pay Gap Persists
While education, experience, and job type are key salary determinants, gender unfortunately still plays a role in pay equity – or lack thereof – across the Northwest Territories labor force.
According to recent data from the Government of Canada, the gender wage gap across the territory remains substantial. Across all occupations, women workers in the Northwest Territories earn just 84 cents for every dollar earned by men performing similar jobs.
This translates to an approximately 18% average pay difference between men and women undertaking comparable roles—a significant gap. Industry and occupation contribute to the disparity.
The earnings gap tends to be most significant in goods-producing sectors like mining, oil/gas extraction, construction, and manufacturing, where women are underrepresented, as well as in higher-paying industries like finance and insurance.
Public administration demonstrates the closest parity, with women earning 7% less than men on average. However, a gap persists even in government roles.
When comparing salaries for specific occupations, some examples of roles with notable gender pay gaps include:
- Mining engineers: women earn 70% as much as men on average
- Construction managers: women earn 75% as much as men on average
- Finance managers: women earn 80% as much as men on average
- Civil engineers: women earn 86% as much as men on average
Read more: Group Health Insurance for Construction Workers in Canada
While awareness around gender pay inequities has increased in recent years, average salaries for women continue to lag behind men for comparable roles throughout the territory. Making meaningful progress on gender pay equity remains an ongoing challenge.
| Occupation | Female Earnings vs Male |
| Mining Engineer | 70% |
| Construction Manager | 75% |
| Finance Manager | 80% |
| Civil Engineer | 86% |
Cost of Living Considerations
When evaluating the earning power and purchasing ability of average salaries in Northwest Territories, it’s essential to factor in cost of living expenses.
In general, prices for basic necessities like housing, food, and transportation run well above national averages throughout the territory due to the remoteness of communities and the need to import many everyday goods by air or winter roads.
Housing represents one of the highest living costs. According to Numbeo data, the average monthly rent for a basic one-bedroom apartment in Yellowknife is around $1,950 (Source). This is substantially higher than rental rates found in Canada’s largest metro areas like Vancouver ($1,750 monthly) or Toronto ($1,500) even though incomes are lower.
Grocery and food costs are also inflated in the territory. A typical monthly grocery bill for one person averages approximately $560 in Yellowknife compared to $450 nationwide – 20% higher. The high prices make salaries go less far than they would in other parts of Canada.
For single-employed residents, average monthly expenses, including housing, food, transportation, basic utilities, and minimal leisure, total about $4,440 in Yellowknife, according to cost of living calculators. This means an annual income of $53,000 or more is required just to cover the basics for an individual.
While certain average salaries in Northwest Territories may seem generous by national standards, the substantially higher living costs eat away at some of that advantage – especially in larger centers like Yellowknife. Workers considering moving to the territory must carefully research and budget expenses.
| Expense | Average Monthly Cost |
| Housing (1 bedroom apartment) | $1,950 |
| Food/Groceries | $560 |
| Transportation | $300 |
| Basic Utilities | $250 |
| Entertainment/Leisure | $100 |
| Total | $4,440 |
Job Satisfaction and Salary Perceptions
Despite the high cost of living, when it comes to salary satisfaction, survey data from PayScale and others suggest that workers in the Northwest Territories tend to be relatively content with their income potential, though perceptions vary by occupation. According to the Government of Northwest Territories, the minimum wage in Northwest Territories is $13.46 per hour, lower than the Canadian average.
According to self-reported salary surveys, approximately 57% of respondents felt they were paid fairly for their income level compared to similar roles in other organizations.
Satisfaction is highest among those employed in stable government and public administration positions as well as critical fields like mining, oil/gas, construction, engineering, and healthcare.
However, salary satisfaction is noticeably lower among hospitality, retail, education, and entry-level workers, reflecting wages that have yet to keep pace with living expenses and inflation.
Overall though, most residents feel their average salaries in Northwest Territories are fair and in line with national averages, particularly those employed in high-demand sectors related to the territory’s resource extraction economy and public administration. But there is room for improvement.
Key Takeaways and Summary
In summary, this extensive guide has provided a comprehensive data-driven overview of the salary landscape across the Northwest Territories. While the average salary is on par with the national mean, incomes vary greatly based on factors like location, occupation, experience level, education, and industry sector.
Here are some key takeaways:
- Smaller, remote towns tied to natural resources offer higher salaries
- Developing extensive experience and education is key to the highest pay
- Healthcare and medicine pay very well, given high demand
- In-demand jobs tend to boast strong salaries despite lower costs of living elsewhere
- A significant gender wage gap persists across occupations
- Cost of living offsets higher incomes, especially in Yellowknife
For any professionals considering a career in Northern Canada, the data demonstrates that the average salaries in Northwest Territories offers very competitive, above-average salaries across many growing occupations to compensate for its remoteness and high costs.
Average Salaries in Canada vary widely between provinces and territories due to factors like cost of living, labor supply, and economic strength. To help you understand pay scales across Canada, we’ve compiled this series on average salaries by region:
- Average Salaries in Ontario
- Average Salaries in British Columbia
- Average Salaries in Prince Edward Island
- Average Salaries in Nova Scotia
- Average Salaries in Yukon
- Average Salaries in Quebec
- Average Salaries in Alberta
FAQs related to average salaries in the Northwest Territories
Where are the highest paying jobs in the Northwest Territories located?
The highest salaries are often found in remote, northern communities involved in natural resource extraction like oil, gas, mining, and construction. Yellowknife, the largest city, has average salaries closer to the territorial mean.
Why do some cities and towns have higher average salaries?
Smaller, remote northern towns tend to have higher salaries to attract workers. Being located near natural resource extraction projects drives demand for high-paying jobs.
When do salaries increase the most in the Northwest Territories?
Salaries increase substantially with more years of experience - 32% higher after 2-5 years, 36% higher after 5+ years, 21% higher after 10 years, and 14% higher after 15 years.
Do higher levels of education lead to increased salaries?
Yes, higher education correlates strongly with higher pay, especially graduate degrees - 29% higher salaries for master's degree holders compared to bachelor's degree holders.
How do salaries compare to cost of living in the territory?
The Northwest Territories has high living costs, particularly for housing and food. This offsets the advantage of higher incomes especially in cities like Yellowknife.
What are the highest paying jobs in the Northwest Territories?
The top paying jobs are in medicine and healthcare, including orthopedic surgeons, anesthesiologists, cardiologists, general surgeons, and plastic surgeons, who all earn over $300,000 on average.
How can you maximize your salary potential in the territory?
Develop specialized, in-demand expertise through extensive experience and education in fields like healthcare, engineering, mining, law, and construction.