How does Canada’s lowest hourly minimum wage stack up to the rest of the country?

By Allison Bamford, CTV National News Journalist

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    St. John’s, N.L. (CTV Network) — Hourly minimum wages increased in several Canadian provinces this spring with more on the horizon, which economists say will likely impact workers and businesses differently.

For students, who often earn minimum wage at their summer jobs, the increase is welcome news.

University of Saskatchewan student Daly Haas makes two dollars more than the current minimum wage and still struggles to pay the bills.

“With the cost of groceries and rent and stuff, I don’t think it’s enough. I think it’s a good step that they’re increasing minimum wage, but I think it needs to be higher,” Haas said.

Saskatchewan, the province with the lowest hourly rate, is due for a raise this fall. But even after the minimum wage increases a dollar to $15 an hour, the province will still be at the bottom alongside Alberta.

Nunavut has the highest with $19 an hour, while B.C. leads the provinces at $17.40. The federal minimum wage, introduced in 2021, is $17.31.

Like Saskatchewan, minimum wage increases are expected in Ontario, Manitoba and Prince Edward Island on Oct. 1.

While there is hope the raise can help boost the standard of living for some, Margot Orr, the director of policy and government relations with the Greater Saskatoon Chamber of Commerce, has concerns about the increased costs for small and medium-sized businesses.

“The effects can be quite large. If they’re unable to absorb some of these costs, we’re going to see some tough decisions being made as those bottom lines get smaller and smaller,” she said.

“It might mean that businesses have to pass those increased costs along to their consumers, which no one wants to see at this time.”

Moves to increase minimum wages come at a time when Canada’s unemployment rate for young people aged 15 to 24 is the highest it has been since July 2016, excluding pandemic years. The youth unemployment rate rose 2.9 per cent from April 2023 to April 2024, to 12.8 per cent, according to Statistics Canada.

Marc Law, economics professor at the University of Vermont, believes a few factors could be contributing to the unemployment rate, including business cuts and a decreased interest in students looking for summer jobs.

“When I’ve spoken with employers of smaller businesses, they often say that we can’t find anybody who wants to work at the wages that we are paying,” Law said.

Statistics Canada said it is likely more students will start to look for jobs in the summer, which will give a better indication on how they are faring in the labour market.

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