Minimum Wage Hikes Across Canadian Provinces
Several Canadian provinces have raised their hourly minimum wages this spring, with more increases expected soon. Economists predict these changes will affect workers and businesses in diverse ways.
For students, who often take minimum wage summer jobs, the wage hikes are a positive development. Daly Haas, a University of Saskatchewan student, welcomes the increase but believes it’s insufficient. “With the cost of groceries and rent and stuff, I don’t think it’s enough. I think it’s a good step that they’re increasing minimum wage, but I think it needs to be higher,” Haas said.
Saskatchewan, currently the province with the lowest minimum wage, will see an increase to $15 an hour this fall. Despite this raise, it will still rank lowest alongside Alberta. In contrast, Nunavut has the highest minimum wage at $19 an hour, while British Columbia leads the provinces at $17.40. The federal minimum wage, set in 2021, stands at $17.31.
Ontario, Manitoba, and Prince Edward Island are also scheduled to raise their minimum wages on October 1.
Margot Orr, director of policy and government relations with the Greater Saskatoon Chamber of Commerce, expressed concerns about the impact on businesses. “The effects can be quite large. If they’re unable to absorb some of these costs, we’re going to see some tough decisions being made as those bottom lines get smaller and smaller,” Orr said. She warned that increased costs might be passed on to consumers, a move that is undesirable during this time.
These wage increases come at a time when Canada’s unemployment rate for young people aged 15 to 24 is the highest since July 2016, excluding the pandemic years. According to Statistics Canada, the youth unemployment rate rose by 2.9% from April 2023 to April 2024, reaching 12.8%.
Marc Law, an economics professor at the University of Vermont, suggests multiple factors contribute to the high unemployment rate, including business cutbacks and a decreased interest in summer jobs among students. “When I’ve spoken with employers of smaller businesses, they often say that we can’t find anybody who wants to work at the wages that we are paying,” Law noted.
Statistics Canada anticipates that more students will seek summer jobs, providing a clearer picture of their performance in the labor market.
As provinces continue to adjust minimum wages, the broader impacts on the economy, particularly for young workers and small businesses, will be closely monitored. Stay tuned to CTVNews.ca for ongoing coverage and analysis of these developments.
