Over one-third of B.C. workers earn below living wage
New report shows minimum wage increases aren't keeping pace with cost of living, widening pay gap especially in Metro Vancouver.
More than a third of British Columbia's workers earn less than the living wage in their communities — a gap that minimum wage increases are failing to close.
A new report from BC Policy Solutions and Living Wage BC reveals that over 775,000 people earn below the living wage in their region. The minimum wage rose to $18.25 per hour on June 1, but that's still over $3 below the lowest living wage in the province — $21.55 in Grand Forks.
In Metro Vancouver and Greater Victoria, the disparity is severe. The living wage in Metro Vancouver is $27.85 per hour — almost $10 more than minimum wage. "In B.C.'s largest cities, Metro Vancouver and Greater Victoria, the gap between the minimum wage and the living wage is over $9 per hour," Living Wage BC noted.
The living wage represents the hourly income needed to cover basic essentials — food, housing, child care, transportation — without government subsidies. Living wage is location-specific and updated annually.
BC Policy Solutions described the human toll: "People who don't earn a living wage face impossible trade-offs. Buy groceries or heat the house, keep up with bills or pay the rent on time. The result can be spiralling debt, constant financial anxiety and long-term health problems. It often means working long hours, sometimes at multiple jobs, just to pay for necessities."
B.C. has tied recent minimum wage increases to the province's average inflation rate, but this hasn't bridged the gap. The Ministry of Labour notes there was no increase for nine consecutive years between 2002 and 2010, and again in 2013 and 2014. The report calls on businesses to become living wage employers and for all government levels to coordinate action on affordability.
B.C.'s minimum wage is the highest in Canada aside from Nunavut, yet residents consistently rank cost of living as their primary concern.