Living wage in Metro Vancouver climbs to $25.68, higher in some B.C. communities, report finds

The living wage continues to climb in B.C., according to a report released Wednesday, meaning hundreds of families are struggling to make ends meet.

The report, compiled by the Canadian Centre for Policy Alternatives, found that one-third of two-parent families in Metro Vancouver do not make a living wage $25.68 per hour, up 6.6 per cent from $24.08 in 2022.

The findings come on the heels of Statistics Canada's latest Labour Force Survey, which found that one in three Canadian households are experiencing financial hardship.

The living wage report took into account basic needs like housing, food, child care, transportation, health-care expenses not covered by the provincial medical services plan, phone and internet, clothes and education. It also looked at contingency funds and additional expenses, like toiletries and household supplies.

The calculations donot include debt or interest payments, the cost of saving for a home, retirement, or sending a child to university. It also doesn't take into account caring for a sick family member leading some to argue that earning a living wage is not the same as earning enough to realistically live comfortably.

B.C.'s minimum wage increased $1 an hour to $16.75 earlier this year, after the province announced in 2022 that minimum wage would be tied to inflation moving forward.

The Labour Force Survey showed that the average hourly wage in B.C. was more than $35 in October. However, economist and report author Iglika Ivanova says there are still thousands of British Columbians making far below average.

She points to a report from last month that found that food bank use is up 57 per cent compared to 2019, adding that more and more working individuals are turning to food banks to feed their families.

"I think that's terrifying," she said. "That really shows that our economic system is broken and we need to intervene, and we need to address these crises because this is not sustainable."

Employer, government action required

About 400 businesses in B.C. are certified living wage employers, meaning they pay their staff and contract employees based on the living wage.

Among them is Greg Masuda, owner of Nikkei Ramen-ya in Courtenay, B.C. He says from the time he openedin 2016, he wanted to be able to pay his staff a living wage but found it difficult at first.

"It's a really tough business and low-margin business," he said.

A trip to Seattle in 2019 showed him it was possible to pay a living wage in restaurants. A restaurant he visited didn't take tips, but instead charged a 20 per cent surcharge, explaining it was topay staff a living wage.

Now, Masuda does the same. And he said it's had a positive impact on his staffing, despite a labour shortage in that particular industry.

"We've been attracting more mature, more committed, more experienced people."

The report suggests that employers like Masuda see better staff retention, higher morale and increased productivity as a result of paying staff more.

The report calls on more businesses to pay employees a living wage, and on the provincial government to improve affordability, including increased tax benefits for families, income supports and accessible public services that help reduce the cost of living, such as reliable public transit.

CBC requested comment from the minister of labour but did not receive a response before deadline.

Living wage rates in 2022 were as follows:

• Clayoquot Sound $26.51
• Columbia Valley $22.63
• Comox Valley $22.02
• Cowichan Valley $25.20
• Daajing Giids $26.25
• Dawson Creek $20.64
• Fraser Valley $20.66
• Golden $25.78
• Kamloops $20.91
• Kelowna $24.60
• Nanaimo $22.87
• Nelson $21.14
• Powell River $25.06
• Prince George $22.09
• Revelstoke $24.60
• Sunshine Coast $25.61
• Trail $21.55
• Metro Vancouver $25.68
• Greater Victoria $25.40