Do Minimum Wage Increases Kill Jobs? Look at the Evidence and Judge for Yourself

When it comes to raising minimum wages, the argument of those opposed to the raises is most often that higher minimum wages kill jobs. The argument is straight-forward and makes sense: A higher minimum wage increases the cost of doing business for those employers who hire in minimum wage positions, pushing some of them out of business. A higher minimum wage also makes it less attractive for businesses to hire in minimum wage positions. If this is true, this should  mean that higher minimum wages  result in higher unemployment rate,  everything else being equal.

Statistics Canada just issued a study today (July 16, 2014)  titled “ The ups and downs of minimum wage, 1975  to  2013” where they have collected the historic minimum wage rates, which they have  adjusted for inflation. The data in this study (along with   Statistics Canada’s  unemployment rate statistics since 1976)  makes it possible to  compare unemployment trends  and minimum wage trends over the past 3 decades. So we did just that and produced the chart below overlaying the two data sets.

So does higher minimum wage kill jobs? Does a  lower minimum wage  encourage employers to create more jobs?  Look at the evidence and decide for yourself.

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Employment Remained Steady in October but Job Quality May Have Declined

Written by Strac Ivanov, MBA, President and Co-Founder of Vicinity Jobs Inc

Economically and politically, October 2013 was a tough month, mired in uncertainty. The US government was shut down for more than half of it, as media was discussing the potential consequences of something most considered unimaginable until only a couple of months ago: A default by the US government. All this uncertainty seemed guaranteed to take its toll on the job market in both Canada and the US: Businesses tend to delay hiring when they are uncertain about where the economy is going.

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Is Canada’s Job Market Stuck in Neutral?

At first glance, StatCan’s Labour Market survey from August paints a pretty rosy picture: Canada’s economy created 59,000 new jobs, and unemployment dropped 0.1 percentage point to 7.1%. But a more detailed look reveals some less encouraging details.

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Recruiting through Social Media: What Works and What Doesn’t

In the competition for top talent, social media is all the rage nowadays. Employers no longer can afford to ignore LinkedIn, Facebook, Google+, and Twitter. Virtually all working age Canadians are now online (95% of those aged under 55, according to an Ipsos Reid poll), so the Internet is the obvious place where you can connect with people.

62% of all Canadians use social networks, 86% of them have a Facebook profile, and most log in at least weekly. So how do you reach them? Just set up a profile on LinkedIn, Facebook, Google+, and Twitter, then invite the whole world to follow you or become your friend. Then start posting links to your jobs. Right?
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The Tough Economic Reality Caught Up with Canada’s Job Market in March

Until March, Statistics Canada’s reports were painting a pretty rosy picture of Canada’s job market. In my blog posts from the past few months, I wondered where the employment growth was coming from. Last month, I suggested that Canada’s employers may be simply delaying layoffs to see where the economy is going. We (Vicinity Jobs) recorded a weak hiring demand levels since last October, and I predicted that unemployment will start creeping up again in the very near future unless the economy turns around. In March, Canada’s economy lost 55,000 jobs, and unemployment increased 0.2 percentage points to 7.2%.

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Why Job Postings on Your Web Site Should Be Accessible to Search Engines

By Strac Ivanov. M.B.A., President and Co-Founder of Vicinity Jobs

It never fails to amaze me how many employers are willing to pay close to $1,000 to post a single job on someone else’s web site, yet use technologies that make jobs advertised on their own web sites virtually “invisible” to the web. Many of them may not be even aware of the fact that the jobs they advertise on their web sites are off limits to search engines. Having your postings inaccessible to search engine crawlers means that you are missing out on a huge free opportunity to reach job seekers.

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Manufacturing Job Declines Offset by Job Growth in Service Sectors in February

On Friday, March 8th, Statistics Canada reported that Canada’s unemployment rate remained unchanged in February at 7%. The economy created 51,000 jobs, but the increase was offset by a corresponding increase in the number of people looking for work. February was supposedly a good month for those looking for work in the hospitality industry and in the professional services industry, but a bad one for manufacturing industry workers.

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Why Hiding Job Postings Deep in Your Corporate Web Site Is a Bad Idea

How easy is it for job seekers to find information about job openings on your web site?

Many companies hide information about their job openings deep in their corporate web site structure. Candidates are often expected to go through the “About Us” page, then read about the company’s culture and why it is such a great place to work, before they get to the actual job postings.

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Is Your Job Advertising Approach Working: 4 Simple Questions to Ask Yourself

We hear quite often in the news about employers having difficulties finding suitable candidates for certain positions. But are they using the right tools and channels to make sure they are reaching out to the right candidates? In my experience, the answer is usually “no”.

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