Find out which provinces have the highest cost of living in Canada here.
Food Bank report shows record number of people who accessed food banks last year had jobs
“There is an economic argument for paying living wage, which includes having individuals join your company, stay at your company and be loyal,” said Dr. Maria Mayan, professor and researcher at the University of Aberta’s School of Public Health.
“When there's a turnover constantly to retrain people and get them up and running, there’s always a cost.”
In response to a report from The Food Bank of Canada (FBC), Mayan said that offering low-income workers “good jobs” that include a living wage is the most important way employers can support staff who may be nearing – or below – the poverty line.
The report showed that working poverty is on the rise, as 17% of people who accessed food banks last year had jobs, the highest ever number of “working poor” on their records in Canada. Whereas in past years the cause of poverty has been unemployment, now, inflation and the high cost of living is the main cause.
The FBC report also pointed to reduced government spending on social programs resulting in “a social safety net with gaping holes that allows millions of people in Canada to fall through it and into a life of poverty.”
Food banks have become an “unofficial social safety net” for individuals who otherwise fall through gaps in social support, the report stated. In Ontario in 2022, 4.3% of the population received disability support, but they made up 30% of food bank users. In Alberta, people receiving disability supports used food banks 840% more than other groups.
Single working-age adults were also identified as a priority group for policy recommendations. A survey conducted by the Canadian Centre for Policy Alternatives found that 29% of B.C. workers aged 25 to 65 are working multiple jobs, and those with lower household incomes were more likely to work multiple jobs than higher earners. However, there still is a large number of mid- and high-income earners who are working more than one job, likely due to high costs of living and less job security at all levels.
Find out which provinces have the highest cost of living in Canada here.
“A good job is a living wage, government protections like paying into EI, pension, and vacation pay, sick leave, health insurance, and a path forward,” said Mayan. “You can say, ‘If I stay in this job for two years, three years, the next level up, I'm competitive for professional development.’”
Offering a living wage, versus minimum wage, is key, Mayan said, citing the city of Canmore as an example, where because of inflated costs of living, a living wage for people who work in the service industry there would be $30-$40 per hour, and upwards of $50 per hour for single mothers.
Statistics Canada’s Labour Force Survey found that in 2022, inflation increased by nearly 7% but average hourly wages only increased by 5.6%. Workers that are the most affected by this disparity are the lowest 25% of earners and those working in industries that have the highest amount of part time work: food service, accommodation and retail.
“Any kind of feminized industry, anything where women work,” Mayan said, noting that in industries such as oil and gas, uneducated men can secure jobs for “shocking” amounts of money.
While it is tempting to want to target women or other groups in the workplace that might be struggling financially, Mayan stressed that offering charity isn’t the answer – offer good jobs and a living wage instead.
“Charity doesn't work. It's lovely, it generally makes the person who has donated the food or donated something feel really nice,” Mayan said. “But charity keeps people where they're at. It doesn't ever let anybody change their life circumstances. Creating charitable programs within the workplace might be nice. But that's not the change we need.”
