On January 1st, 2018, Ontario’s minimum wage increased from $11.60 per hour to $14 per hour and it does not stop there. The province will continue to enrich workers’ pay-checks to $15 per hour by next year.In terms of microeconomics, minimum wage is when the government makes it illegal for a business to pay a worker under a fixed price. When this number rises, it creates job shortages, as the amount of people who are willing to work for a higher pay increases and the amount of businesses that are able and willing able to pay decreases.
Despite heated debates on the positives and negatives of minimum wage changes, I am a firm believer that the increased pay is a step in the right direction for the province. The rising minimum wage in Ontario benefits not only workers, but businesses, as well.First and foremost, increased pay lends people to feel more appreciated and valued which in turn makes them motivated to do more quality work since they want to keep working and earning what they earn. People working 35-40 hours a week should be able to feed their families, pay their rent and take care of their children and loved ones. If someone falls ill, they shouldn’t feel obligated to go to work, threatening the health of co-workers. There is a basic level of fairness that all employees deserve.
The average 1 bedroom condo rent in Toronto is $2000/month 1. However, the full-time minimum wage payment is $1,690 per month. Minimum wage should be enough to cover basic human needs: food, housing, etc.
But with rent alone being 18.3% more than what is being earned, minimum wage isn’t enough to support a person.From the point of view of a business, the most difficult employment openings to fill are low-paying jobs. In Toronto alone, more than 500 new minimum wage job listings were posted in the month of January.2 By raising the minimum wage, workers are more inclined to go through the tedious task of submitting applications to these jobs which often require a lot of time and effort to apply. In addition, businesses benefit by cutting down on training session and recruitment costs for low-skill jobs with high turnover, saving them money. Workers who are paid more don’t feel the need to quit and leave their jobs, since they’re earning decent pay.
Furthermore, the increased compensation increases productivity in the workplace because workers do not want to lose their jobs.Ontario is making moves towards fairness for all employees. With minimum wage pay being higher than it has ever been, the benefits to workers and businesses will greatly benefit the productivity and efficiency Ontario’s market