Paying workers a reasonable amount of money works out well fro economies. Raising minimum wage is happening in a few jurisdictions throughout North America and the results are coming in that the wage increase for the lowest-paid employees benefits everyone. In Ontario the minimum wage was increased last year and economic growth continued unabated, so much so that unemployment is now at a 18-year low in the province.
“It is tough to find a lot of evidence that employment has been negatively impacted,†said Josh Nye, senior economist with Royal Bank of Canada. “In terms of the minimum-wage hike, it has come at a good time when the economy is able to absorb that. Demand for labour is so strong and labour market conditions are quite tight. Employers don’t have much of a choice,†he said.
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The minimum-wage hike has helped boost paycheques. In Ontario, the average hourly rate increased 4.3 per cent to $27.16 over July of last year. Across Canada, average hourly earnings rose by 3.2 per cent to $26.61.