Canada could see the loss of 60,000 jobs this year
The successful trend of job growth in Canada may take a different turn thanks to the new minimum wage increases, according to the Bank of Canada. As of January 1st, the Ontario minimum wage rose from $11.60 an hour to $14. It is also expected that by the end of the year Alberta, Quebec, and Prince Edward Island will follow suit.
Many experts have gone back and forth on the issue, and now the Bank of Canada had put in their two cents. The bank put forth a report stating that Canada’s economy could see around 60,000 less jobs by then end of 2018 from where the year started.
"Although empirical evidence is mixed on the magnitude of minimum wage effects, most studies for Canada find that the reduction in employment is statistically significant, especially for younger workers," the bank said in its report.
Many small business owners have come forward to express concerns over how the wage increase will affect their business. Farmer Kevin Howe of Howe Family Farms in Aylmer, Ont. said he's already planning on cutting back on the number of crops he plans to plant this year. As a result he expects that he will not be able to employ as many worker, as consumers will likely not be willing to pay the increased prices needed to cover the wage increases.
"Costs are always going up and we need to be able to pass these costs on to stay in business," he told CBC News in an interview Tuesday.
The farm has been in the family for five generations, and some summers Howe hires up to 400 people to pick his strawberry crop. However, this year there will be fewer hours available as the farm is reducing their strawberry acreage by 30 per cent as a precaution.
"It's definitely going to impact the amount of work available," said Howe. "It's going to make for shorter days [and is] definitely not going to be good for the community."