Job loss a realistic possibility with province’s $15 minimum wage plan
Posted Dec 16, 2015 12:50 pm.
Last Updated Dec 16, 2015 4:17 pm.
This article is more than 5 years old.
Alberta is sailing into uncharted waters with its minimum wage policy and job loss is a realistic possibility.
That from an internal briefing document prepared for Minister of Jobs, Skills, Training and Labour Lori Sigurdson, ahead of the October increase for 2015.
“At this point it is not fully known what the overall impact of this kind of upwards wage pressure would have on what is still an uncertain economy but it is reasonable to assume that job loss and perhaps significant job loss is one realistic possibility.”
The document was obtained by the Canadian Federation of Independent Business through a freedom of information request.
It says the government needs to do further research and analysis into what kind of an impact it’s plan will have on the province’s economy.
“Determining the overall economic impact of the new policy presents many challenges – the complexity of analysis, the multiplicity of potential casual variables and the sheer uniqueness of the Alberta situation make it difficult to make meaningful predictions.”
It adds “possibility is not really prediction” and adds “Alberta will essentially be sailing into uncharted waters.”
“Alberta needs to build more analytic and research capacities to make better sense of a renewed minimum wage policy that is intended to to produce not just economic but social effects. It is recommended that this research and analysis continue and intensify even as the first rate is announced and that the additional knowledge is gained through this exercise be used to ensure that the adoption of the minimum wage policy be informed and smooth as possible.”
CFIB Vice-President of British Columbia and Alberta Richard Truscott says it’s clear there isn’t a lot of research that has been on this file on what the impacts will be.
“There isn’t a lot of research that’s been done by the government, they have not done their due diligence, they have not done economic modelling, they have not done empirical analysis on what the economic impact would be,” he said. “It also blows holes in the Premier and Labour Minister’s own argument that somehow raising the minimum wage will actually create jobs.”
“It looks like they’re now trying to scramble and match the facts and the research with their assertion,” he said.
Truscott adds it’s sad they’re continuing to proceed with this and he’s hopeful they re-examine their approach.
The minimum wage was raised by a dollar on October 1st, making the third-highest in the nation.
And the briefing note says the first increase would likely not have much of an impact.
660 NEWS did reach out to the Minister of Jobs, Skills, Training and Labour and was told she was unavailable for comment.
A spokesperson did send the following statement:
“Our government believes those earning the least should be able to take care of their families. We analyzed the potential impact of this year’s increase and found that there would not be negative economic consequences. We will continue to make fact based decisions, every step of the way as we move forward with our commitments.”
To see the full report – click here.
