The NDP and the Real Facts on Minimum Wage

April 16, 2009
The NDP and the Real Facts on Minimum Wage

It is telling that Carole James and the NDP are forced to rely upon 15-year-old economic analysis out of the United States and social advocacy organizations to support their job-killing policies on minimum wage and small business.

Perhaps we can provide them with some more recent facts to help. 

If the NDP looked at the research they would see that according to Statistics Canada there are approximately 50,800 employees making minimum wage, not the 115,000 the NDP allege.  See the proof

In addition according to Statistics Canada, the number of employed people earning minimum wage is actually decreasing in BC – from 6% of workers in 2001 to 2.7% in 2008 – the second lowest proportion in Canada.  That same analysis showed that nearly two thirds of those individuals were under age of 25 with a large proportion of that group attending school or are part of economic units
with multiple incomes. See the proof

Meanwhile, the costs to small businesses and jobs could be enormous. The BC Chamber of Commerce has already estimated the cost at $450 million a year.  And according to research conducted on behalf of the government of Ontario, a 25% increase in the minimum wage could conservatively result in BC losing well over 50,000 jobs.  See the proof

BC is successful because we pursue policies that grow wages and grow jobs. The average hourly wage in BC is over $22 an hour – more than 2.5 times the minimum wage and nearly 24% higher than in 2001. The average hourly wage for youth in BC is over $13 an hour – more than 1.5 times the minimum wage and the third highest rate in Canada. Youth unemployment dropped from 17.4% in 1998 to 8.4% in 2008.

Those are the facts, and the NDP spin is simply reckless and irresponsible.