Study Suggests Minimum Wage Hike Will Put Jobs at Risk

Wednesday, 16 August 2017 13:00

A new study commissioned by the Ontario Chamber of Commerce suggests the minimum wage hike will put 185,000 jobs in jeopardy.

The minimum wage hike in Ontario could threaten 185,000 jobs according to a recent study completed by the Keep Ontario Working Coalition.

The study was also done in partnership with the Ontario Chamber of Commerce and the Woodstock District Chamber of Commerce. It revealed that if the legislation goes forward as it is currently drafted, there will be significant job losses in the Province. The study shows that the sudden wage hike will put 185,000 jobs at risk in the first two years.

Vice President of Policy and Government Relations at the Ontario Chamber of Commerce says Bill 148 is going to have a significant impact on a lot of people.

"The changes presented in Bill 148 will have dramatic unintended consequences that include putting close to two hundred thousand jobs at risk and seeing everyday consumer goods and services increase by thousands of dollars for each jobs at risk and seeing everyday consumer goods and services increase by thousands of dollars for each and every family in Ontario. We've run the numbers and it’s clear that this is too much, too soon. If the Ontario government chooses to proceed with these sweeping reforms too quickly, all of us will be affected, and the most vulnerable in our society chief among them."

Data from the economic impact analysis shows:

- $23 billion hit to business over the next two years alone.

- 185,000 Ontario jobs will be at immediate risk over the next two years.

- 30,000 of the jobs at risk are youth under 25.

- 96,000 employees at risk are expected to be women.

- 50 per cent increase to inflation for this year and the foreseeable future. The cost of everyday consumer goods and services will go up by $1,300 per household on average each and every year.

- The Ontario government would need to borrow $440 million more to cover the increases in new costs from this legislation. If the government were to provide offsets to businesses, as they have indicated, the province’s treasury will take a bigger hit.

- Municipalities will be forced to increase employee wages by $500 million without additional offsetting revenues.