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Media Release
For IMMEDIATE Release
March 14, 2016
ACC Calls for a Provincial Approach of "Do no Harm"
A recent Alberta Chambers of Commerce survey of Alberta businesses indicates provincial minimum wage increases implemented on October 1, 2015, have contributed to negative labour market outcomes in Alberta.
Statistics Canada's February 2016 Labour Force Survey records Alberta's unemployment rate at 7.9%, 0.6% above the national average, the same month the ACC survey garnered nearly 800 qualified respondents' province-wide.
Survey highlights include:
- On average, businesses indicated the October 1, 2015, increase in minimum wage had resulted in an additional cost of $21,456.05 to their business with an average cost per employee of $835.76 per year;
- For businesses of 50 or fewer employees, the cost per employee is significantly higher at $1,224.91, and is expected to rise nearly 285% to $3,490.24 per employee if the minimum wage moved to $15 per hour by 2018;
- Of respondents who had laid off workers since October 1, 2015, two thirds had laid off only minimum wage earners and expected this trend to continue with further minimum wage increases.
Other factors negatively impacting business and labour market outcomes were identified as economic slowdown, drop in oil prices, devaluation of the Canadian Dollar and increased taxes.
"Our unemployment is the highest in decades. What job creators need most right now is not to deal with further burdens preventing them from doing what they do - create jobs," says ACC President & CEO Ken Kobly.
Respondents indicated that layoffs, limited promotion and advancement, and the reduction of health benefits were among the negative outcomes their employees have been facing.
"Some of the contributing factors are out of our control. But a number of them are, such as further minimum wage increases," says Kobly. "A general policy of 'do no harm' by government right now could be the best approach to helping improve labour market outcomes for all Albertans."
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For further information or comment, please contact:
Ken Kobly, President and CEO
Alberta Chambers of Commerce
780.425.4180 Ext.5
(c) 780.975.1659
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