Contrary to popular wisdom, a new report released Thursday by the Canadian Federation of Independent Business has found growing minimum wage requirements enacted by the federal government end up hurting the very people they are intended to help.
Small businesses seek to offer competitive wages in order to retain high-performance staff members, but high minimum wages often burden companies such that they are forced to make cuts in other areas of their budget - strikes that may include reduced hours and training or even the jobs themselves.
According to the report, a mere 10 percent jump in minimum wage across all provinces costs more than 321,000 jobs.
"At a time when the economy is in slow recovery, the last thing governments should be considering are policies that further hinder job creation," said Marilyn Braun-Pollon, CFIB's vice president in Saskatchewan.
Since 2001, the only province that has not raised its minimum wage is British Columbia, where the rate is $8.00 per hour, compared to $11.00 in Nunavut.
"Governments should consider all other alternatives in place of minimum wage increases so that small businesses' ability to create jobs is not compromised," Braun-Pollon added. "It's time provincial governments are held accountable for the ineffectiveness of their minimum wage policies."
