The minimum wage in six Canadian provinces has been raised to $16.55 an hour, a move that is expected to help address the cost-of-living crisis that is increasing food bank visits and economic worry. However, supporters argue that the raises are not enough to help Canadians make ends meet.
Ontario’s minimum wage is set to increase to $16.55, Manitoba’s to $15.30, and Nova Scotia, Prince Edward Island, and Newfoundland and Labrador to $15. Saskatchewan’s minimum wage increased to $14, but it remains the country’s lowest, lagging New Brunswick by 75 cents. Advocates applaud the raises but argue they need to be more to help Canadians make ends meet.
The minimum wage in Nunavut is $16 per hour, while the minimum wage in the Northwest Territories increased to $16.05 per hour in September. Nova Scotia workers now receive $1.40 more per hour than they did last year.
Policy analysts believe the reform is eight years overdue, as the working class uses food banks more frequently.
In September, the Food Banks of Canada’s poverty index gave Saskatchewan a barely passing grade, revealing that more than a quarter of those polled were unable to buy products considered necessary for an adequate level of living.
The Canadian Federation of Independent Business warns that the wage rises may provide difficulties for small business owners who cannot afford to pay their employees, with some forecasting job cuts.
Concordia University professor Moshe Lander argues that minimum wage increases are merely a band-aid solution and that inflation may force overall expenses to outpace minimum pay gains once again.
A recent Leger survey shows half of young Canadians are living paycheck to paycheck, with an increasing percentage of millennials and Gen Z individuals adjusting their spending habits as the cost of living rises.
