Increasing the minimum wage to $15 an hour could cost 50,000 jobs, warns Ontario’s independent fiscal watchdog, The Financial Accountability Office or better known as TFAO. This may be the plan in Ontario but I am sure the idea will be coming to Northeaster BC some day soon.
The Federal Liberal government’s forthcoming hike to the $11.40-an-hour wage, which will jump to $14 in January and $15 in 2019. On the surface of things this sounds like a great idea for those who have been working for peanuts but eventually they will also be getting the shells and husks was well.
You see, Ontario’s proposed minimum wage increase will result in a loss of approximately 50,000 jobs (0.7 per cent of total employment), with job losses concentrated among teens and young adults. Those are the very people who got out and voted Mr. Trudeau and the Liberal Party into office.
The higher minimum wage will increase payroll costs for businesses, leading to some losses for lower income workers. This has been a continued concern of the Provincial Chambers of Commerce and other business groups across Canada.
Now to be totally honest, higher labour income and household spending will boost economic activity leading to some offsetting job gains.
The problem rears its ugly head when you consider the number of minimum wage workers will climb from about 520,000 to 1.6 million by 2019. Also, it must be considered as important that under a $15 minimum wage, adults and those with full-time jobs would represent most of minimum wage workers.
Therefore, the cost of doing business will be more expensive and there will be greater stress on workers to give a full day’s work. Also, those who get and expect extra breaks for things like feeling a bit sick or religious and cultural opportunity will become a thing of the past.
The proposed minimum wage increase is both larger and more rapid than experience, providing businesses with a greater incentive to reduce costs more aggressively.”
This is really a case of be careful what you ask for!!