B.C. Labour Minister Harry Bains (Black Press)

Most B.C. minimum wage earners ‘aren’t poor,’ report says

Four out of five live with parents or a higher-wage earner

As B.C. prepares to increase its minimum wage to $12.65 an hour on June 1, a new study suggests that it will do little to reduce poverty.

More than 84 per cent of B.C.’s minimum wage earners don’t live in low-income families, the Fraser Institute found in an analysis of federal low-income statistics that define poverty in Canada.

In 2017, more than 55 per cent of minimum wage earners in B.C. were aged 15 to 24, and 78 per cent of them lived with parents or other relatives.

And more than 22 per cent of the same group had an employed spouse, of which 93.1 per cent earned more than the minimum wage or were self-employed. Only two per cent of minimum wage earners were single parents with young children.

“Contrary to widely held misperceptions, the vast majority of minimum age earners in B.C. aren’t poor, and they are rarely the primary or sole income earner in their household,” said Charles Lammam, director of fiscal studies at the Fraser Institute. “The majority are, in fact, teenagers and young adults living with their parents.”

The June 1 increase from $11.35 to $12.65 an hour is part of the B.C. NDP government’s pledge to raise the minimum wage in steps to $15.20 by 2021. That’s a 34 per cent increase in three years, and it meets a long-standing demand of the B.C. Federation of Labour that the minimum wage reach $15 an hour.

Labour Minister Harry Bains announced in April that the lower minimum wage for liquor servers is also being phased out, with larger increases until it matches the general hourly rate in 2021.

RELATED: Small businesses expect to cut staff

The latest increase comes as the B.C. government is under pressure from business groups about its health care payroll tax. Finance Minister Carole James disputed a Greater Vancouver Board of Trade study that said two thirds of small businesses said they expect to pay the tax. The employer health tax is being phased in starting January 2019.

Just Posted

Drugs and guns seized by Chilliwack Mounties in complex case

Drug trafficking investigations led to five arrests in three different locations across Chilliwack

Chilliwack RCMP trying to catch robbery suspect

Police hope someone will identify the person who appears in security camera footage

Chilliwack churns out new generation of wildfire fighters

School district partners with B.C. Wildfire Service to prep Grade 12s for careers

Bucket-list flight for Chilliwack grandmother

Hampton House resident treated to a beautiful plane ride in Moments that Matter

UFV introduces first mindfulness graduate program in Canada

Most of the University of the Fraser Valley program is offered online

Stolen Bentley spotted going wrong way down highway found in Summerland

The car has been recorded going the wrong way on the Coquihalla, found two days later

Province announces $18.6 million for B.C. Search and Rescue

The funding, spread over three years, to pay for operations, equipment, and training

Vancouver-bound transit bus involved in fatal crash near Seattle

One man was killed and a woman injured in crash with bus purchased by TransLink

Late-season wave of the flu makes its round in B.C.

BC Centre for Disease Control reported 50 per cent jump in flu cases in first weeks of March

Tofino’s housing crisis causing some to seek shelter at the local hospital

Tofino’s housing crisis is pushing the town’s ‘hidden homeless’ population into the forefront.

Sentencing judge in Broncos crash calls for carnage on highways to end

Judge Inez Cardinal sentenced Jaskirat Singh Sidhu to eight years

2 fires in Victoria caused by cigarettes prompts warning from deputy fire chief

Two separate fires caused by cigarette butts were avoidable

Most Read