Cité Libre: Low paid work still widespread in Canada

Despite strong economic growth, historically low unemployment rates and much discussion about labour shortages, about one in six of all employed workers in Canada - almost 2.2 million -- was still low paid and earning poverty wages in 2006.

More than 1.1 million full-time workers, or 10% of the full-time workforce, was paid less than $10 an hour; for women this ratio is 13.2%.

Over 1 million adults were paid less than $10 an hour in 2006, including 721,000 adults who worked full-time - representing 7% of all adults who worked full-time.

One in five working seniors was paid less than $10 an hour, and one in six seniors who worked full-time.

A high proportion of workers in the following occupations and industries were paid less than $10 an hour:

The real value of the minimum wage is still far below what it was 30 years ago in every single province in Canada.

The average minimum wage in 1976 would be equivalent to $9.13 in today's dollars after adjusting for inflation. The federal minimum wage from 1976 would be worth $10.19 in real dollars now.

If minimum wages had increased at the same rate as Gross Domestic Product per capita (the average amount that each Canadian produces) it would be $14 today.

The most widely accepted poverty income levels for Canada are based on Statistics Canada's low income cut offs (LICOs). In 2005, these were $17,895 for an individual living in a mid-sized city in Canada, and $20,778 for an individual living in a large city.

This means that a person working full-time would need an hourly wage of least $10 to escape poverty in a large city and $9 an hour in a mid-sized city. Not one province in Canada has a minimum wage that provides this.

Recent experience in the United Kingdom, where the government raised the minimum wage quite rapidly to over £5.00/hour (now at £5.35/hour over C$11.00) was considered to have resulted in no negative effect on jobs and to have a positive impact on productivity .

Even after planned increases to the minimum wage to $8 an hour in Ontario and Quebec, Canada's average minimum wage will be far below minimum wage levels in the U.K., Ireland, France and most other Western European countries that have national minimum wages .

The average provincial minimum wage in Canada will rise to $7.63 after all currently planned increases for this year have been made. This is only two-thirds of the current minimum wage levels in Ireland, France, Australia and the UK, which are all at more than $12 in Canadian dollar terms.

All Canadian provinces, with the exception of Manitoba and Saskatchewan, have had lower minimum wages than virtually all their bordering U.S. States. If proposed increases to the U.S. federal minimum wage go forward then there will be no exceptions.

The value of the federal minimum wage in the United States will be $8.53 in Canadian dollars in two years if the Fair Minimum Wage Bill goes through and increases the U.S. federal minimum wage to US$7.25 within two years. It would take two years of increases at 6% for Canadian minimum wages to catch up to this level.

Higher minimum wages in U.S. border states haven't resulted in higher unemployment rates or economic damage.

Become a Member:

Would you like to see other similar articles and critical commentaries in The Canadian National Newspaper? Then, show your support. Make a member-pledge donation, in support of the Membership Drive of the Pro-Democracy Media Foundation.

The Canadian can only continue to publish investigative articles in such areas, with the donations from members of the public in Canada, the U.S., and abroad. Consider making a donation of $50.00, $75.00, $100.00, $200.00 or more. Donors are eligible to receive our first collector's print edition in mail. Alternatively, you can send us a note to be placed on our special email list of members. Member-donors can also suggest articles or commentaries to be published in The Canadian.

The Canadian is a socially progressive and not-for-profit national newspaper, with an international readership. We provide an alternative to the for-profit commercial focused media, which often censors vital information and perspective of potential interest to the diverse Canadian public, and other peoples internationally.