Minimum Wage Hikes Could Mean Fewer Jobs
CBJ — A report by the Bank of Canada says that the increase to minimum wage in various provinces and territories across the country could result in a loss of about 60,000 jobs by the end of 2019.
Researchers at the central bank spent time on an in-depth project in an effort to determine the possible economic impact of the wage hikes.
As of Jan. 1, Ontario’s minimum wage is now $14 an hour, up from $11.60. Bartenders and wait staff now earn $12.20 per hour. By the end of 2018, Alberta, Quebec and Prince Edward Island are also expected to hike their minimum wages.
Economists and business leaders have argued non-stop over whether the increases will be good or bad in the long term — the key part of the phrase being long-term. The concern is that many small business owners simply won’t be able to absorb such large increases over a short period of time and will be forced to lay off some staff and possibly use increased automation.
It will likely take at least 90 days and maybe longer to determine the full impacts, positive or negative.