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.
Continue reading Do Minimum Wage Increases Kill Jobs? Look at the Evidence and Judge for Yourself
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.
Continue reading Employment Remained Steady in October but Job Quality May Have Declined
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.
Continue reading Is Canada’s Job Market Stuck in Neutral?
Canada’s employers continued hiring in May. The economy created 95,000 new mostly full-time jobs.And while Canada’s unemployment rate is still 0.1% higher than the 7% reached at the first months of this year, there are more Canadians working now than there have been at any time in the past 5 years.
Continue reading Hiring in Consumer-Driven Sectors Pushed Canada’s Unemployment Down to 7.1% in May
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%.
Continue reading The Tough Economic Reality Caught Up with Canada’s Job Market in March
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.
Continue reading Manufacturing Job Declines Offset by Job Growth in Service Sectors in February
by Strac Ivanov, president and co-founder of Vicinity Jobs Inc
After defying economic gravity for a couple of months, Canada’s job market seems to be coming back to earth.
Continue reading Gravity Prevailed On Canada’s Job Market in January 2013
Statistics Canada released its latest Job Market on November 2nd, and it shows that Canada’s economy only created less than 18,000 jobs in October. Virtually all were government-funded jobs, while private sector employers actually let more people go than they hired. The 18,000 new jobs were not enough to move the unemployment rate, which remained unchanged at 7.4% . While this performance came after two months of more convincing employment growth, it makes it hard to predict where the job market will go from here. Vicinity Jobs recorded a strong hiring demand in October and this may lead to a better job market performance in November. But the uncertainties persist.
Continue reading Canada’s Job Market Showed Unremarkable Peformance in October
Canada’s economy lost 30,000 jobs in in July 2012, pushing the unemployment rate up 0.1% to 7.3%. The Statistics Canada labour survey report for July shows that most of the jobs lost were part-time, and among women aged 55 and over. The losses were concentrated in a handful of provinces, including BC, Quebec, and Manitoba, while employment remained unchanged in most other provinces, including Ontario and Nova Scotia.
Continue reading July’s Unemployment Growth May Signal More Trouble Ahead
Written by Strac Ivanov
June 11, 2012: According to Statistics Canada’s labour market survey, released on Friday, June 8th, Canada’s job market seems to be weathering the global economic uncertainties quite well – at least for the time being. A separate report tracking hiring demand that we (VicinityJobs.com) release each month also points to signs of strength in the job market.
Continue reading Market for Jobs in Canada Shows Surprising Resilience in Spite of Global Economic Uncertainty