Minimum wage impacts jobs: report

The Canadian Federation of Independent Business (CFIB) has released a report challenging the overall effectiveness of minimum wage policy in Canada, revealing that increases tend to hurt the very people they are supposed to help.

The Canadian Federation of Independent Business (CFIB) has released a report challenging the overall effectiveness of minimum wage policy in Canada, revealing that increases tend to hurt the very people they are supposed to help.

Contrary to groups that assert minimum wage increases do not adversely affect the whole economy, CFIB’s research report paints a very different picture on the potential job impact.

Minimum Wage: Reframing the Debate estimates that a 10 per cent increase in the minimum wage across all provinces costs up to 321,300 jobs.

In British Columbia, this could mean a loss of between 11,700 and 42,700 jobs. These job losses would take the form of hiring freezes, slower employment growth, or direct job cuts during economic downturns.

“At a time when the economy is in slow recovery, the last thing governments should be considering are policies that further hinder job creation,” said Marilyn Braun-Pollon, CFIB’s vice-president for Saskatchewan and co-author of the report.

Provincial minimum wage rates currently range from $8 in British Columbia to $10.25 in Ontario. British Columbia has not increased its minimum wage since 2001; however, this does not mean that market wages have been stagnant.

“The B.C. experience shows that wages for many entry level and low-skilled jobs will increase without raising minimum wages. However given the existing pressures impacting the B.C. hospitality industry, imposing further increases would have a significant impact on their bottom line,” said Laura Jones, CFIB’s vice-president for Western Canada.

“Is there a better way to help low wage earners? Several recent studies suggest that training and education can better help those permanently in low-wage jobs transition to higher paying positions. This combined with tax relief seems like a more effective, targeted way to help those most in need,” noted Jones. — CFIB

Just Posted

19 Wing Comox welcomes new wing commander

Col. Dany Poitras assumed command of 19 Wing Comox

Pacific Salmon Foundation contributes $42,000 to Comox Valley wild salmon restoration projects

The Pacific Salmon Foundation announced it is contributing more than $42,000 to… Continue reading

Mount Washington zip line nearing completion

Once finished, the line will be the longest and steepest zip line on Vancouver Island

PHOTOS: Vancouver Island MusicFest revisited

This year’s lineup included Colin James, Tom Cochrane and lots more

Jets host peewee baseball tourney

The Comox Valley peewee A Jets baseball team is hosting a 10-team… Continue reading

Body, burning truck found near northern B.C. town

RCMP unsure if the two separate discoveries are related

Couple found dead along northern B.C. highway in double homicide

Woman from the U.S. and man from Australia found dead near Liard Hot Springs

UPDATE: West Kelowna fawn euthanized, not claimed by sanctuary

Gilbert the deer has been euthanized after a suitable home was not found in time

BC Wildfire Service warns wet weather no reason to be complacent

Fire risk currently low for much of B.C. compared to same time over last two years.

Bank of Canada lowers qualifying rate used in mortgage stress tests

Home sales softened last year after the federal government introduced new stress test rules for uninsured mortgages

Port Hardy RCMP cleared in arrest that left man with broken ribs, punctured lung: IIO

The IIO noted the matter will not be referred to crown counsel for consideration of charges.

B.C. man pleads guilty in snake venom death of toddler

Plea comes more than five years after the incident in North Vancouver

Trudeau says Ottawa open to proposals for B.C. refinery as gas prices soar

Prime minister says he knows B.C. residents are struggling and the federal government is open to ideas

Most Read