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

B.C. students send books to displaced students of Hornby Island school fire

Maple Ridge elementary school teacher says students learned about acts of kindness

North Island Tour De Rock rider Benjamin Leah leads team to Port Hardy

“You don’t have issues and problems when you look at these kids and how much they’re going through.”

Denman Island awash with plastic debris

After 14 years of Community Beach Cleanups, the little Gulf Island of… Continue reading

Supports service tax helping homeless in Courtenay

Latest count indicates greater number of homeless seniors

Associate pastor made early connections in Courtenay

Central Evangelical Free Church opens at former Record office

Environment Canada confirms Ottawa area hit by two tornadoes Friday

At one point more than 200,000 hydro customers were blacked out

Trump drains oxygen from Trudeau foreign policy with PM, Freeland bound for UN

A lot has changed since the Liberals came to power in Canada in 2015

B.C. man fined $15,000, barred from trading securities for fraud

Larry Keith Davis used money from an investor to pay personal bills

Emergency crews investigate small sulphuric acid spill in Kootenays

IRM states a small volume of less than one cup and three dime-sized drips were leaked from carrier

Family, friends of B.C murder victim want killer sent back to max security facility

Group wants convicted murderer Walter Ramsay sent back to a maximum security facility

B.C. VIEWS: Looking under the hood of ICBC’s war on crashes

Is our accident rate really soaring, or is it inefficiency?

B.C. tent city residents have three weeks to clear out: Supreme Court

Fire risk, criminal activity in neighbourhood cited as reasons for judgment

Most Read