Minimum wage hikes could cost 7,000 jobs: report

A 10 per cent-hike in New Brunswick's minimum wage could kill as many as 7,000 jobs, according to a report released Thursday by the Canadian Federation of Independent Business.

The country's small business lobby group says large increases in minimum wages across Canada force business owners to curtail staff hours and even eliminate jobs.

Its report calls for governments to find other ways to help low-income earners, especially through the income tax system or training incentives, instead pushing up the minimum wage.

As many as 321,300 jobs could be cut across the country if minimum wages were increased by 10 per cent, according to the report.

At a time when the Canadian economy is starting to recover from a recession, the Canadian Federation of Independent Business (CFIB) contends that governments should avoid "policies that further hinder job creation."

Andreea Bourgeois, the CFIB's director for New Brunswick, said the group understands that assisting low-income workers is an important policy goal for governments to tackle.

"However, minimum wage hikes are not the best or most effective solution," Bourgeois said.

"It's time for government to start examining other tools that will do a much better job."

New Brunswick has a plan to raise the minimum wage to $10 an hour by Sept. 1, 2011.

According to the report, Ontario's general rate of $10.25 in 2010 was the highest minimum wage in Canada, followed by Newfoundland and Labrador and Nunavut, which both had a $10 wage. Nunavut increased its minimum wage to $11 on Jan. 1, 2011.

New Brunswick and the Northwest Territories are both planning to increase their minimum wages to $10 in 2011.

British Columbia has the lowest minimum wage at $8.

In 2009, 5.3 per cent of New Brunswick workers were paid minimum wage compared to the national rate of 5.8 per cent.