Alberta minimum wage hike could result in 'significant job loss:' memo

The Alberta government's promise to increase the minimum wage to $15 an hour could result in "significant job loss," according to an internal memo.

See Full Article

A briefing note, prepared for Labour Minister Lori Sigurdson in June, states that officials didn’t know the overall impact of a minimum wage increase on the province's "uncertain economy."

"…but it is reasonable to assume that job loss, and perhaps significant job loss is one realistic possibility," the memo reads.

The memo said "major research" is needed to better understand the potential impact, and noted that by 2018, the estimated numbers of minimumwageearners could reach 17.7 per cent of the Alberta workforce.

“The impacts of further changes as that group grows in size and as the increases get larger probably cannot be assumed away,” the note reads. “And wage pressure may be a future challenge for the province’s labour market.”

The memo was obtained by the Canadian Federation of Independent Business (CFIB) through a freedom of information request.

Richard Truscott, CFIB vice-president for B.C. and Alberta, said the wage hike promised by the NDP government is an “irresponsible” way to develop public policy.

"It certainly looks like the government is shooting first and asking questions later," Truscott told CTVNews.ca. “They proceeded with this policy without truly understanding and analyzing what the full impact would be."

Truscott said small businesses in the province are already struggling to stay viable.

"This huge hike in the minimum wage is going to have an enormous impact on their bottom line," he said.

Alberta's minimum wage was raised by $1 to $11.20 an hour, on Oct. 1.

Premier Rachel Notley has promised that the government would boost the minimum wage to $15 an hour by 2018.

Alberta currently has one of the highest minimum wages in the country, trailing only Northwest Territories at $12.50 an hour and Ontario at $11.25 an hour.



Advertisements

Latest Economic News

  • Bogus bongs or bogus lawsuits? Pipe maker sues over fakes

    Economic CTV News
    FORT LAUDERDALE, Fla. -- Don't want to bum your buzz, but that expensive bong you got cheap to smoke your pot may be bogus. High-end German glass water pipe maker Roor and its American licensee are filing lawsuits against smoke shops and mom-and-pop convenience stores in Florida, California and New York. Source
  • 'There isn't a best card out there': How to choose a credit card that works for you

    Economic CBC News
    Credit cards are sometimes lambasted as high-cost consumer debt that can quickly get borrowers into trouble. But if you pay off the balance each month, credit cards can also have significant perks. Loyalty programs like Air Miles, which has both a standalone program and partnerships with credit cards, have drawn a lot of criticism lately, but Canadians are still attached to credit cards that offer rewards. Source
  • Chevron says it has won the latest round in an Ecuadorian legal battle

    Economic CTV News
    Oil giant Chevron Corp. says it has won a round in the Canadian courts in a complex legal battle with a group of Ecuadorian villagers who are trying to collect on a massive judgement they won in Ecuador's courts. Source
  • Liberals ask President Trump to approve Keystone XL pipeline

    Economic CTV News
    Canada’s natural resources minister says that he hopes the new U.S. administration will allow the Keystone XL pipeline quashed by Barack Obama to proceed, noting that all Canadian regulatory approvals are in place. Jim Carr spoke to CTV’s Power Play from Washington, D.C. Source
  • Apple depicts Qualcomm as a shady monopolist in US$1B lawsuit

    Economic CTV News
    SAN FRANCISCO -- Apple is suing mobile chip maker Qualcomm for $1 billion in a patent fight pitting the iPhone maker against one of its major suppliers. The 100-page complaint filed Friday in a San Diego federal court depicts Qualcomm as a greedy monopolist abusing its power in a key segment of the mobile chip market to extort royalties for iPhone innovations that have nothing to do with Qualcomm's technology. Source
  • Trump's 'America first' tone worries head of Canadian oil and gas industry group

    Economic CTV News
    Trump takes charge: Sworn in as 45th president of the U.S.A. Source
  • Obama administration urges Canada to reverse Super Bowl ad decision

    Economic CTV News
    OTTAWA - In one of its final communications with Canada, the outgoing Obama administration is engaging in pigskin politics: asking the Trudeau government to overturn a regulation affecting ads during the Super Bowl. The U.S. Source
  • Oil and stock prices higher as Donald Trump sworn in

    Economic CBC News
    Stock markets responded to the first day of the Trump Administration in a largely positive way, with the Dow Jones, the Nasdaq and the S&P 500 all higher on the day of his swearing in. The Dow Jones Industrial Average was up by nearly 100 points to 19,829 just minutes before the new president formally acceded to the position. Source
  • Stocks higher as Donald Trump lays out glimpse of future economic policies

    Economic CBC News
    Stock markets responded to the first day of the Trump Administration in a largely positive way, with the Dow Jones, the Nasdaq and the S&P 500 all higher on the day of his swearing in. The Dow Jones Industrial Average was up by nearly 100 points to 19,829 just minutes before the new president formally acceded to the position. Source
  • Stocks close higher as Donald Trump lays out glimpse of future economic policies

    Economic CBC News
    Stock markets responded to the first day of the Trump Administration in a largely positive way, with the Dow Jones, the Nasdaq and the S&P 500 all higher on the day of his swearing in. The Dow Jones Industrial Average was up by nearly 100 points to 19,829 just minutes before the new president formally acceded to the position. Source