Main menu:

History of RPE Thought

Posts by Tag

RSS New from the CCPA

  • Charting a path to $15/hour for all BC workers November 22, 2017
    In our submission to the BC Fair Wages Commission, the CCPA-BC highlighted the urgency for British Columbia to adopt a $15 minimum wage by March 2019. Read the submission. BC’s current minimum wage is a poverty-level wage. Low-wage workers need a significant boost to their income and they have been waiting a long time. Over 400,000 […]
    Canadian Centre for Policy Alternatives
  • CCPA-BC joins community, First Nation, environmental groups in call for public inquiry into fracking November 5, 2017
    Today the CCPA's BC Office joined with 16 other community, First Nation and environmental organizations to call for a full public inquiry into fracking in Britsh Columbia. The call on the new BC government is to broaden a promise first made by the NDP during the lead-up to the spring provincial election, and comes on […]
    Canadian Centre for Policy Alternatives
  • Income gap persists for racialized people, recent immigrants, Indigenous people in Canada October 27, 2017
    In the Toronto Star, CCPA-Ontario senior economist Sheila Block digs into the latest Census release to reveal the persistent income gap between racialized people, recent immigrants, Indigenous people, and the rest of Canada.
    Canadian Centre for Policy Alternatives
  • CCPA in Europe for CETA speaking tour October 17, 2017
    On September 21, Canada and the European Union announced that the Comprehensive Economic and Trade Agreement (CETA), a controversial NAFTA-plus free trade deal initiated by the Harper government and signed by Prime Minister Trudeau in 2016, was now provisionally in force. In Europe, however, more than 20 countries have yet to officially ratify the deal, […]
    Canadian Centre for Policy Alternatives
  • Twelve year study of an inner-city neighbourhood October 12, 2017
    What does twelve years of community organizing look like for a North End Winnipeg neighbourhood?  Jessica Leigh survey's those years with the Dufferin community from a community development lens.  Read full report.
    Canadian Centre for Policy Alternatives
Progressive Bloggers

Meta

Recent Blog Posts

Posts by Author

Recent Blog Comments

The Progressive Economics Forum

Who earns minimum wage?

UPDATE: All numbers exclude self-employed workers. The Labour Force Survey doesn’t provide wage data for self-employed workers, and self-employed workers aren’t subject to minimum wage laws. “Proportion of workers” is more accurately “Proportion of employees”. The number of employees per province can be found in CANSIM Table 282-0012.

Minimum wages have been getting a lot of attention lately. And for good reason. Workers earning minimum wage often struggle to get enough hours, don’t have predictable schedules or advance notice of shifts, and many don’t even have access to unpaid sick days.

Alberta’s current government was elected on a plan to raise the minimum wage to $15 by 2018, and the Nova Scotia NDP recently tabled a bill that would have the minimum wage increase each January, eventually reaching $15 in 2019.

How many people even earn minimum wage? Well if you take everyone earning less than the primary minimum wage, there were 1,253,000 workers earning minimum wage or less in 2015 (many provinces have exceptions or lower wages for students or alcohol servers).

Minimum wage (2015) Number (000’s) Proportion of workers
BC $10.45 98.2 5.2%
AB $11.20 100.1 5.2%
SK $10.50 22.2 4.7%
MB $11.00 50.4 9.1%
ON $11.25 675.5 11.6%
QC $10.55 232.6 6.6%
NB $10.30 18.5 6.0%
NS $10.60 30.9 7.9%
PEI $10.50 4.7 7.5%
NFLD $10.50 18.0 8.4%

Source: Labour Force Survey microdata 2015, Government of Canada Minimum wage database

But if we’re talking about increasing the minimum wage, workers who earn just above that get a raise too. So how many workers benefit directly from a $15 minimum wage? Well, in 2015 about 25% of all workers in Canada made $15 / hr or less. That’s more than 4 million workers. This varies significantly by province, from 18% of all employees in Alberta, to 38% of all employees in PEI.

Number (000’s) Proportion of workers
BC 482.5 25.5%
AB 350.5 18.2%
SK 106.6 22.7%
MB 162.8 29.6%
ON 1,670.1 28.6%
QC 971.4 27.5%
NB 111.5 36.0%
NS 130.6 33.5%
PEI 23.9 38.4%
NFLD 69.6 32.6%

Source: Labour Force Survey microdata, 2015

We also often hear that low wage workers are young workers, living with their parents, and raising the minimum wage will only hurt them – making it harder for young workers to break into the labour market. David Green, a professor at UBC, reviewed the existing literature on minimum wages and found that “Estimated [employment] effects for young adult and adult workers range from insignificant to non-existent.” He also found the Canadian evidence shows that increasing the minimum wage reduces turnover – so raising the minimum wage actually creates more stable jobs for workers too.

And while lots of young workers are employed in low wage jobs, many adults are as well. Besides, young workers deserve a fair wage for their labour too.

Finally, women are disproportionately represented in these low wage jobs – fully one-third of women earn less than $15 / hr, compared to only 22% of men.

Employees earning less than $15 (000’s) Low wage employees as % of all employees
Men Women Men Women
15-24 776.5 892.0 65% 74%
25-54 681.1 1,112.9 13% 22%
55+ 243.1 373.9 18% 29%
Total 1,700.7 2,378.8 22% 32%

Source: Labour Force Survey microdata, 2015

It’s also important to note that many in the Fight for $15 movement have made associated improvements in employment standards part of their campaign. In Ontario, the 15 and fairness campaign addresses issues such as sick days, predictable scheduling, and contract flipping.

Fight for $15 is a concrete way to push back against growing inequality and precarious work – join the fight for decent work in your province!

Enjoy and share:

Comments

Comment from Paul Tulloch
Time: May 26, 2016, 11:27 am

good work Angella. I actually just received the micro file from LFS- and was examing this fact. I was wondering what wage should we consider low wage? Is <$15/hour the standard? I want to explore low age workers using some data mining techniques. So I was wondering what to use as a threshold that would stand the critical feedback of the prevailing rational. Thanks for your hard work Angella- and yes I say some things once in a while that you probably don't like- but I still love our progressive space and all those in it- but somebody needs to be critical! We are small enough as it is!

Comment from GG4
Time: September 15, 2017, 6:16 pm

Where did you get the data for the proportion of workers earning minimum wage? I could not find it easily in your source links.

Comment from Angella MacEwen
Time: September 17, 2017, 8:00 pm

The data comes from the public use microdata from the Labour Force Survey. It’s not available online.

Write a comment





Related articles