The increase in the minimum wage will eliminate 60,000 jobs, according to the Bank of Canada

Photo: Michaël Monnier Duty
In Quebec, the minimum wage is currently$ 11.25 per hour.

About 60,000 jobs will disappear by 2019 due to the increase in the minimum wage in the different provinces of the country, believes the Bank of Canada, but the income from work will be higher because of the same increases.

 

In an analytical report on the impact of the wage increases, the specialists of the central bank to calculate the index of consumer prices could rise by about 0.1 percentage point, on average, throughout 2018. In addition, the gross domestic product could decline by about 0.1 per cent by the beginning of 2019.

 

The number of jobs lost was based on a decline of 0.3% in the number of hours worked, while the rise in overall real wages is expected to be 0.7 %.

 

According to the analytical report, if the average number of hours worked declined, following an increase in the minimum wage, the number of jobs lost would also be lower.

 

The Bank of Canada estimates that approximately 8 % of all employees work at the minimum wage. This proportion rises to 11 % if one adds the range of 5 % above the minimum wage.

 

Ontario has increased the 1st of January the minimum wage to $ 14 an hour, when it was previously 11.60 per hour. She intends to go to $ 15 per hour by 2019. For its part, Alberta has the intention of raising its minimum wage to $ 15 per hour later this year.

 

In Quebec, the minimum wage is currently $ 11.25 per hour.

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