Stop Kathleen Wynne from jeopardizing youth employment & small businesses

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Ontario Premier Kathleen Wynne is planning to increase minimum wage to $15 an hour by 2019. The increase to minimum wage could hurt young workers more than help them. Only three years ago the premier’s own minimum wage panel found that through research of Canadian examples every time you increase the minimum wage by 10 per cent it has the reverse impact of lowering youth employment by six per cent. We can therefore expect that Wynne’s plan to hike the minimum wage by 32 per cent would reduce youth employment by around nine to 17 per cent. Multiply that by the number of young workers in Ontario, and that’s 80,000 to 155,000 jobs lost. This estimate does not take into account the fact that Ontario’s minimum wage will be much higher than in other provinces which would  have a negative employment effect over and above the effect from the higher minimum wage itself. This extra negative effect is the consequence of employers being encouraged to relocate to provinces less hostile to business. For the businesses that can not relocate, they have to tackle this problem by cutting down employees' hours and hiring less employees.The drastic increase of nearly 32% to the minimum wage in the space of 18 months will definitely hurt small businesses as well as employment rate.

There is no question this will lead to fewer jobs, fewer hours, and fewer employers. Making these kind of reforms are only positive if you are proceeding in a way that is evidence-based, well-thought-out and based on research to count for all the factors and economic impacts; and not only for getting more votes & political gains. 

 

 

 



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