Hiking minimum wage could cost 50,000 jobs: watchdog

Increasing the minimum wage to $15 an hour could cost 50,000 jobs, warns Ontario’s independent fiscal watchdog.

The Financial Accountability Office on Tuesday released a six-page assessment of the Liberal government’s forthcoming hike to the $11.40-an-hour wage, which will jump to $14 in January and $15 in 2019.

“On net, the FAO estimates that Ontario’s proposed minimum wage increase will result in a loss of approximately 50,000 jobs (0.7 per cent of total employment), with job losses concentrated among teens and young adults,” the office said.

“The higher minimum wage will increase payroll costs for Ontario businesses, leading to some job losses for lower income workers,” it continued, echoing the concerns of the Ontario Chamber of Commerce and other business groups.

  • mauser 98
  • simus1

    Plus providing an excellent backstop for financiers making loans to those creating all manner of robotic food service systems.
    Plus lifting the baseline for union bargaining of all wage rates – especially those paid to members of government unions.

    • Hmm so only Public Service Union members will benefit. It all makes so much more sense now.

  • andycanuck

    But $15 Cdn is only US$12.30 so shouldn’t they be raising it to $20 Cdn instead?
    /sarc/f#ck you

  • Clink9

    Our local burrito place jacked up the prices last week.
    Why I asked? Because the minimum wage is going up.

    Hasta la vista baby.

    • I will riot for lower Burrito prices.

      • Clink9

        I know, right?

  • moraywatson

    Don’t be silly. Raising the cost of employment is going to lead to higher employment. Every small business owner in Ontario has been waiting with barely concealed excitement for minimum wages to increase by an obscene amount, so they can go out and employ overpriced newbies that they otherwise weren’t going to hire. /sarc off

  • Dana Garcia

    It will be hard for humans to work cheaper than robots.

    The $15 wage campaign is union scam to get members, but it’s very short term given technology’s coming impact.

    • It is inevitable.

    • terrence22

      I think all union “leaders” have a LOT of stocks in companies that make robots – the higher the minimum wage, the more robots will be used. But, I also think that union “leaders” are NOT very bright.

  • marty_p

    Everyone forgets the obvious when talking about the minimum wage hike – some of the employees currently earning minimum wage are barely worth what they are paid now i.e. how many times have you left a store or have gotten off the phone and shook your head and said “I am surprised that individual knows how to put on their shoes on the correct foot”.
    How many times did you shake your head in amazement when the person behind the cash can’t even provide the proper change without a calculator or cash register telling them how.
    What’s most frustrating is when the dope on the other end of the phone is a civil servant earning $60-$70K

    • I dread any dealings with civil servants.

    • Marius K

      Work is something that you show up at some place for some time ..dude, /sarc off

  • Samuel Q-L

    “Machines were, it may be said, the weapon employed by the capitalists to quell the revolt of specialized labour.” – Karl Marx

  • Massive unemployment in five, four …

  • Hard Little Machine

    It would be more honest if we all agreed that a minimum wage at any level helps some people and hurts some people. There really is no such thing as a magic wand that fixes everything for free. No, really. There are some people who would be helped by an increase and there are others who would be put out of work.

    That’s why unions have WORK RULES – to avoid the downside of high wages. That’s the only point. The costs are passed along and the jobs preserved.

    Moreover there’s a corroding effect on the people who are just above the new minimum who don’t see much or any gain. All of a sudden they’re practically minwage and they may have clawed their way up to be where they are whereas Tommy Dumbass just got a 40% increase for not shitting on the floor.

    Unfortunately you can’t easily Deus Ex Machina your economy and not have problems. Otherwise all economists would be out of work and there would be do economic policy or debates for the last 500 years.