P.E.I. minimum wage still falling short of livable, says think-tank

P.E.I.'s minimum wage will see an increase this year of more than $3 an hour since 2020, but remains well short of a living wage and is gaining little ground, says the Canadian Centre for Policy Alternatives.

The group released its latest study on living wage listing what was required in P.E.I., Nova Scotia and Newfoundland and Labrador on Wednesday.

It set the living wage on P.E.I. at $22.76 per hour, leaving the current minimum wage of $15.40 more than $7 short.

"It's not a poverty wage, it is a wage though that is fairly conservative," said report co-author Christine Saulnier.

"It doesn't include any debt, and I don't know anybody in real life without any of that."

The wage also doesn't include saving for retirement.

The wage is calculated for two parents working full-time, and earning to support themselves and two young children. It includes some government transfers in the calculation of the family's revenue, such as the Canada Child Benefit, as well as deductions such as EI and CPP.

Expenses taken into account include food, shelter, transportation, child care and clothing.

"The number one item that's really pushing up, certainly since we looked at Charlottetown back in 2020, is absolutely rent," said Saulnier.

"You still have a rental market that has a 0.5 per cent rental market, which basically means there's very, very little in the market, very, very little that would be affordable, even if you are earning this living wage."

When the centre last looked at the P.E.I. wage in 2020 the minimum wage was $12.85, and the report set the living wage at $19.30.

In both reports, the minimum wage was about 67 per cent of the centre's living wage. On Oct. 1 the minimum wage will increase to $16, bringing it to 70 per cent of the living wage.

The report recommends provincial governments should plan to increase the minimum wage to $20 as soon as possible.

"They're making very difficult choices, likely," said Saulnier of a couple earning $20 an hour.

The report calculated a living wage for Nova Scotia of $26.53, and of $25 in Newfoundland and Labrador.

Part of the business model

Despite business complaints that higher minimum wages lead to job losses and inflation, the report said real world research has found that a higher minimum wage has no impact on job losses, and in some studies led to an increase in employment in low-wage areas.

Businesses, said Saulnier, need to take responsibility for their workers, and ultimately that will be good for the economy.

"You need to be providing workers with decent wages, living wages. That has to be part of your business model. If it is not then there is a problem," she said.

"It's very important for our businesses to understand that their workers are also the people that need to buy services in their stores. This is about the economy, if we're stimulating the economy and supporting those workers so that they can actually afford what we're talking about here the essentials."

Saulnier praised some important steps the P.E.I. government is taking to lower costs for families, saying it is leading the country in providing child care, and making important investments in public transportation.