According to a post by the Canadian Press, the province of Ontario enforced a hike in the minimum wage from $2.40. In the same month of January, 59,300 part-time jobs were shed. Steven Del Duca, the Economic Development Minister of Ontario, says that the wage rise is not the cause of job losses. Statistics Canada reported that from December 2017, an average of 50,900 part-time jobs were lost and 8,500 permanent jobs created. Duca attributes the market behavior to a normal national trend.
The wage increment has attracted a different reaction from economists. The minimum wage rose from $2.40 to $14 per hour. Some economists feel that the high wage could cause job losses because employers would strive to reduce the number of staff. Other economists do not see any correlation between wage hike and job losses. Matthew Arseneau, a significant economist based at the National Financial Markets, attributes the elevated number of job losses to corporate adjustments to the new wage bill. He added that young people were the most affected by the job losses. In a different light, Canada could just be having a positive wage growth in January. The 3.3 percent growth is a step in the right direction for Canada according to a statement by Craig Alexander, the senior economist at the Conference Board of Canada. The hourly wage rate is expected to hit the $15 mark come 2019.