Minimum Wage Hikes Will Cost Canada 60,000 Jobs Says Bank Of Canada

Inflation will rise slightly, while GDP will go down 0.1%.

Minimum wage hikes across Canada will result in the loss of 60,000 jobs, according to the Bank of Canada.

According to a recent report on a study by the Bank of Canada, “In examining the impact of the wage increases, the report estimated that the consumer price index could be boosted by about 0.1 percentage points on average and real gross domestic product could be cut by 0.1 per cent by early 2019. The number of jobs lost was based on a 0.3-per-cent decline in the number of hours worked, while aggregate real wages were estimated to increase 0.7 per cent.”

While the fact that wages will go up is positive, the loss of jobs is not.

Of course, there are ways to get higher wages without the loss of jobs. It would require policies that increase the leverage of Canadian workers – including reversing Trudeau’s planned large immigration increases, and rethinking trade deals that end up letting good jobs and factories get taken away by low wage countries.

Those are two things that the globalist elites are not willing to do, because they want to put workers in a more desperate situation, and are hell-bent on destroying our homegrown manufacturing capacity.

After all, some of those workers who don’t get jobs due to the minimum wage hike will end up dependent on government benefits, and will likely fall even further into debt, giving politicians more power over them, while production will continue to shift to low wage countries that are able to circumvent any idea of fair trading.

So, while various governments try to legislate higher wages, their other policies are going against workers.

Additionally, future trade deals hold more serious peril for working class Canadians, including the fact that China wants to be able to import their workers into the country as part of any “free trade” deal, which would have a devastating impact on Canadian workers.

Spencer Fernando

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One comment Add yours
  1. I’d like to know how,exactly,the Bank or anyone else comes up with these figures.They just throw it out there,based on paper calculations and ,let’s be honest here,guesswork.

    Just as when an industry or politician claims a project will produce X thousand jobs,such as the 60,000 green jobs Ontario was promised, this is pure speculation based on computer models,just like global warming.

    The media loves to trumpet a sexy or scary headline,so agencies with an agenda can say anything they want,no one will EVER check the actual figures to discern the reality,as that is neither sexy nor scary.

    The reality of a small business is you have to take what comes from the government,and a wage increase is just another expense as are raises in EI, CPP,and WCB premiums. You aren’t going to close your business,or lay off a bunch of employees, contrary to what every small businessman will claim. You are going to raise your prices and carry on.If you need ten employees, you’ll suck it up and continue with the new rates.

    It’s simply in the best interests of all businesses to catastrophize to the media in order the scare politicians from contemplating another raise a few years down the road.

    I had acquaintances who owned two fast food franchises,they were rich,period,lived in a house where most of us couldn’t afforded the garden shed, drove the latest and greatest cars,took expensive 6 week long vacations with the entire family in Fiji,but were the first to howl to the moon about a 50 cent raise in the minimum wage,and always said they would have to lay off workers.

    They never laid off anyone as they needed the number of staff they had, but just loved to cry “havoc” over a small raise.
    The worst way to find out a truth about a situation that will cost someone money,is to ask them.

    They will always lie and bitch about costs of doing business, but the simple fact is they make far more money working for themselves and have much greater control over their lives than just being an employee,and THAT is what keeps them going, despite their disingenuous claims of going bankrupt if employees get one more cent of their profits.

    The Bank should get back to us in a year’s time,and tell us how many employees actually were laid off due to the increase in the minimum wage,which would be hard to discern from businesses that closed for other reasons or multiple reasons. But 60,000 lost jobs? I don’t believe it.

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