Alberta had the lowest wages in the country. It is now the second lowest figure

When Alberta raised the provincial minimum wage to $15 an hour in the fall of 2018, it was the highest in the country.

But nearly six years later, and after the pandemic, the minimum wage hasn't changed — even as Albertans face the highest rate of inflation in Canada.

Many provinces and territories are increasing the minimum wage this year, and those that haven't will only do so in 2023.

That means one of Canada's wealthiest provinces is left behind. Alberta currently has the second lowest wage in the country. Saskatchewan remains at the bottom, at $14 an hour.

Meaghon Reid, executive director of Vibrant Communities Calgary, a poverty reduction organization, said that's a far cry from Calgary's minimum wage, which is $23.70 and is calculated by the Alberta Living Wage Network.

“Every year that we don't raise the minimum wage, it's getting harder and harder for that number of people,” Reed said.

“We know that because people on minimum wage can't make ends meet, they have to compromise on things like medicine and food. That's what we hear the most.”

Reid said he is watching to see how other provinces adjust their wages to keep up with cost-of-living increases.

For example, Ontario's minimum wage will be adjusted for inflation to $17.20 in October, while British Columbia's will increase to $17.40 in June based on the Consumer Price Index. The federal minimum wage increased to $17.30 on April 1.

Other provinces have not been hit as hard by the cost increases. Alberta inflation rate increased by 4.2 percent in February, which is higher than the national average of 2.8 percent.

His advocates and Alberta's lowest-income people wonder why the Alberta government isn't helping more at an unprecedented time when other provinces are.

“Caught in a cycle”

University of Calgary student Cliodna Brittner is one of 126,000 Albertans earning the minimum wage. While she tries to put in as many hours as she can as a host, she said she only has $15 an hour.

“I can't afford to go out or treat myself. So it takes a mental toll,” 19-year-old Britner said.

She says her future is bleak and she doesn't know how she will be able to afford her own home.

“It was really exhausting. And you feel trapped in a cycle that you really can't get out of or don't know how to get out of.'

Meanwhile, Anand Unnithan, 23, said he used to be able to manage expenses with part-time jobs, fast food, but not anymore. He had to pick up a second part-time job to help his parents pay the bills.

Unnitan said he even reached out to the Southern Alberta Institute of Technology (SAIT) for financial aid to see what options were available for the issue.

“The government should definitely consider increasing the minimum wage,” Unnitan said.

It's not just students or young people who are struggling with high prices. Alberta's most recent minimum wage profile – from 2020 – shows 73 per cent of minimum wage earners are not teenagers and 41 per cent have children.

Prevention of economic impacts

In a statement to CBC News, Alberta's Ministry of Jobs, Economy and Trade says it understands the inflationary pressures many Albertans are facing.

“We also recognize that potential changes to the minimum wage will have a significant impact, including costs for workers, small businesses and ultimately all Albertans,” said spokesperson Josh Aldrich.

Mike Holden, chief economist for the Alberta Business Council, says there are ways to prevent the impact on the economy — it all depends on how the changes are implemented.

“You have to signal the change ahead of time and it's not a surprise. I think you want to avoid really big jumps,” Holden said.

“Giving businesses time to plan for it and giving them time to adjust to small increases, and potentially small and sustainable growth, would be a much smoother path. Otherwise, you're going to have a really difficult transition.”

Holden said the timing of potential growth is also important. He said Alberta is currently in a weak economic spot, which is masked by its large population growth.

“If you create more inflation, you perpetuate the problem you're trying to solve. Therefore, the most important thing is to increase such steps.”

Charles St. Arnaud, Alberta Central's chief economist, said because the percentage of Albertans earning the minimum wage is relatively small, raising the wage won't hurt the economy too much. But it could boost wages for workers who currently earn just over $15 an hour.

He said while Alberta has the highest median income in Canada, the gap between other provinces is closing.

“If the average wage in Alberta converges with the rest of the country, we should see the minimum wage move closer to the average,” St. Arnaud said.

The province said it is constantly evaluating the calculation of Alberta's minimum wage.