P.E.I. has the highest percentage of workers earning $15/hr or less
Canadian Labour Congress says several provinces looking at $15 minimum wage
P.E.I. had the highest percentage of workers in the country earning $15 an hour or less in 2015, according to Statistics Canada.
Thirty-eight per cent of P.E.I.'s workforce, or about 23,900 workers, classified as the working poor.
It's a statistic that Canadian Labour Congress senior economist Angella MacEwen is using to argue for higher minimum wages in P.E.I., as a way to boost the economy.
"That means that there are a lot of people who are maybe what we would class as working poor," says MacEwen.
"You're struggling to pay groceries and get the kids what they need. And that means that it's harder on the rest of the economy because that's fewer people shopping at the grocery store or going out for supper to a restaurant or spending that money in the economy and circulating that around."
Way to get more money circulating
The CLC campaign 'Fight for $15 & Fairness' calls on all provinces to set minimum wages at $15 at least.
MacEwen told CBC News several provinces are exploring the possibility, including B.C., Nova Scotia and Alberta.
If you're a lower wage worker and you get an extra dollar in wages you're absolutely going to turn around and spend that dollar in your community.- Angella MacEwen
But with less than 20 per cent of Alberta's workforce earning $15 or less, MacEwen said that province raising the minimum wage to $15 an hour would have less impact than in P.E.I with close to 40 per cent of workers earning low wages.
Even a $1 increase in the minimum wage, MacEwen said, has been found in U.S. research to give a worker $250 more to spend per quarter, and people earning lower wages tend to spend that money rather than save it.
"So if you're a lower wage worker and you get an extra dollar in wages you're absolutely going to turn around and spend that dollar in your community."
Gradual wage growth best strategy says province
Economic Development and Tourism Minister Heath MacDonald says his government is committed to continue seeing wages increase steadily.
He points to the promise for a three-fold increase in the minimum wage since July 2015 as evidence of that.
"We're moving in the right direction and we'll continue to work towards that goal," said MacDonald.
"By October 1 of this year we will lead Atlantic Canada in minimum wage, but that's contributing to the economy."
MacDonald says gradual change is better than a complete overhaul in the minimum wage, saying the province has to work with small- and medium-sized businesses that form the backbone of the Island economy and make sure they're on a solid footing.
"We have to continue to grow, and we will do that, and I think sometimes slow growth is better and manageable for everybody involved," said MacDonald.
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