Metro Vancouver’s living wage soars over $25 an hour

Metro Vancouver’s living wage has jumped by more than 6.5 per cent in 2023, as the Centre for Policy Alternatives (CPA) finds that the region’s living wage is now $25.68 per hour.

“This is the hourly rate that each of two parents working full-time must earn to support a family of four in Metro Vancouver,” the centre said Wednesday.

It explains that the raised wage covers necessities and “supports the healthy development of their children,” however while providing a decent standard of living, “it is still very modest … without the extras many of us take for granted.”

The CPA, with its partner Living Wage for Families BC, says that families in Metro Vancouver now have to spend over $4,000 more than 2022 for the same “basket of goods.”

“While parents with young children in licensed child care have benefitted from large fee reductions this year, the savings are entirely consumed by soaring prices in other areas,” the centre explained. “Housing costs alone demand an added $411 per month from their budget—a spike of 16.6 per cent. Food, the second most expensive item in the living wage family budget, is an extra $68 per month, soaring by 6.1 per cent.”

The CPA notes that Metro Vancouver doesn’t have the highest living wage in the province. That can be found in Clayoquot Sound, with a living wage of $26.51.

The Fraser Valley and Dawson Creek were found to have the lowest living wages, just over $20.60 for both regions. However, this is a marked increase for the Fraser Valley, as it saw an almost 9 per cent increase over 2022, when the living wage was calculated to be just $18.98.

“In the last two years, the gap between the minimum wage and living wages in BC has grown significantly. In Metro Vancouver, this gap is now close to nine dollars per hour,” said Anastasia French, provincial manager for Living Wage for Families BC. The province’s minimum wage sits at $16.75 per hour.

 And while inflation has dropped from 2022’s historic highs, the report’s lead author says the cost of living across B.C. continues to “increase rapidly.”

“BC’s low-wage workers need a raise but the labour market alone can’t resolve all economic insecurities,” said Iglika Ivanova. “Governments can and should do more to address the cost of living crisis that people are facing across the province.” 

The latest numbers come as Statistics Canada reported in October that one in three Canadians are living in households that are experiencing “financial difficulties.”

“In October 2023, 1 in 3 Canadians aged 15 and older (33.1%) was living in a household that had found it difficult or very difficult to meet its financial needs in terms of transportation, housing, food, clothing, and other necessary expenses over the previous four weeks (not seasonally adjusted). This included nearly 1 in 10 (9.3%) Canadians living in a household that found it very difficult to meet financial needs,” StatCan said in its report.

“While the proportion of people in households finding it either difficult or very difficult to meet financial needs in October 2023 was down slightly compared with the same month a year earlier (35.5%), it remained notably higher than the proportion recorded in October 2020 (20.4%).”

The CPA says that many people who are working in low-wage jobs are facing “impossible choices — buy groceries or heat the house, keep up with bills or pay the rent on time.”

“The result can be spiraling debt, constant anxiety, and long-term health problems. In many cases it means working long hours, often at multiple jobs, just to pay for basic necessities,” it added. “Parents end up having little time to spend with their families, much less to help their children with school work or participate in community activities and we are all poorer for it.”

Loblaw claims federal grocery code of conduct could raise groceries by $1B

The numbers from the CPA come as the federal grocery code of conduct nears completion, and the Canadian industry’s biggest player is raising concerns the guidelines could add fuel to the food inflation fire.

Loblaw Companies Ltd. said it’s worried the code could “raise food prices for Canadians by more than $1 billion” in a letter sent to members of both the steering committee developing the code and the industry sub-committee on Nov. 1, and obtained by The Canadian Press.

The grocer cannot endorse the code in its current form, wrote chief financial officer Richard Dufresne in the letter, requesting a special meeting of the industry sub-committee to address Loblaw’s concerns.

In a statement, Loblaw spokeswoman Catherine Thomas said the draft code has “a number of challenges,” which the grocer believes could risk product availability and increasing food prices. The Loblaw statement also mentioned the potential “$1 billion in costs,” which Thomas said refers to extra costs for Loblaw customers.

Loblaw isn’t the only grocer to express concern about the code. Walmart Canada spokeswoman Sarah Kennedy said in an email in late October that the company supports initiatives benefitting customers but it’s “conscious of adding unnecessary burdens that could increase the cost of food for Canadians, especially during inflationary times.”

–With files from The Canadian Press