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

Unity Comox Valley hosts serenity service in Comox Thursday

Do you have mixed feelings about the holidays? Unity offers a special… Continue reading

UPDATE: RCMP involved in crash south of Courtenay Saturday night

An RCMP member was involved in a three-vehicle collision on Highway 19… Continue reading

Mental health advocate’s journey with dissociative identity disorder sparks conversation

Coast Mental Health Courage to Come Back Awards nomination deadline Jan. 31

Assisted living workers allegedly attacked while picketing

BCGEU president Stephanie Smith says arrows and gasoline were thrown at the picketers early in the week

Dangerous drug confirmed in the Comox Valley

Lab test confirms the presence of fentanyl in powder substance

VIDEO: This B.C. school leads country in vaccine donations to UNICEF

Federally funded Kids Boost Immunity uses quizzes to earn vaccinations

Boeser scores 3, Pettersson has 5 points as Canucks hammer Blues

Vancouver picks up impressive 6-1 win in St. Louis

B.C. police stop drunk driver who offered up burger instead of ID

Roadblock checks over the weekend found at least two other impaired drivers

In Canada, the term ‘nationalism’ doesn’t seem to have a bad rap. Here’s why

Data suggest that Canadians don’t see the concept of nationalism the way people do in the United States

Small quake recorded west of Vancouver Island

No injuries or tsunami warning after 5.4 rumble felt some 400 kilometres from Victoria

B.C. suspends Chinese portion of Asian forestry trade mission due to Huawei arrest

Huawei’s chief financial officer Meng Wanzhou was detained at the request of U.S. in Vancouver

Canadians spent $1.7 billion dollars online in December 2017

Online retail sales accounted for 3.4 per cent of total retail sales

2-year investigations nets $900,000 in refunds for payday loan customers

Consumer Protection BC says selling practices were ‘aggressive and deceptive’

China: Canada’s detention of Huawei exec ‘vile in nature’

Huawei is the biggest global supplier of network gear for phone and internet company

Most Read