http://www.fraserinstitute.org/newsandevents/news/6426.aspx
Raising BC’s minimum wage could cost more than 52,000 jobs and reduce opportunities for young workers
Summary
This article is explaining, why BC shouldn't raise the minimum wage of $8 to $10. This would only result in the loss of many jobs; up to 52,000 jobs. In the study of the Economic Effects of Increasing BC’s Minimum Wage, it was found that the increasing of the minimum wage will result in the job loss from 10,898 to 52,200. For the past couple of years the unions has been trying to raise the minimum wage. Studies found that increasing in minimum wage will make it a huge disadvantage and it has a significant negative impact on employment for those who have a lower skill level and the young. In the past there was a 10% increase in the minimum wage across Canada, with this increase the employment decreased for young workers ages 15-24 by 3 to 6%. Since the raise in wage is so drastic, this event can result in 4.5-20% employment losses. There are also other negative to the raise in minimum wage; "fewer benefits and less training for workers. Higher minimum wages can also induce high school students to drop out of school and search for employment." There were statistics that found that there were 62,600 BC workers earning $8 per hour in 2007 and more than 56% of these were young workers ages from 14 to 24. Eighty seven percent of them lived at home with family. “Many of the remaining individuals earning minimum wages are adults supplementing their family income with part-time work during child-rearing years or after retirement." The increase of BC's minimum wage will only result the loss of jobs and opportunities and this will make life difficult for those with low income and those who live in poverty.
Connection
In chapter 16 we have learnt the benefits with becoming an employee. One of them is UI (EI) which is unemployment insurance ( employment insurance), this fund is provided from a portion of employed worker's pay into the large pool of money and the employer is suppose to match this amount of money. If the worker has worked for a long enough period of time and has contribute to this fund. If this worker is unemployed, they are entitled to receive payment out of the fund. Since UI is meant for unemployed workers, the raising of the minimum wage from $8 to $ 10 will only cause a large amount of lay-offs; this may cause the EI fund to run on low due to the huge amount of unemployed workers. With fewer workers contributing to this fund it also creates a problem. What will happen if they run out of the fund?
Reflection
In my opinion, if raising the minimum wage would only do more harm than good; we should just stick to $8 an hour for minimum wage. This article shows that increasing the minimum wage would lead to thousands of people to lose their jobs, especially in the young (between ages 15-24) and the citizens who have less skill. If raising the minimum wage will only cause a burden and a load for the citizen of Canada, why would anyone still consider about raising the wage? Raising the wage would only benefit a small amount of people, this will only cause unemployment rate to raise and the goal of having high standard of living for Canadian citizen would just be a joke. Having the minimum wage as it is provides more opportunities for the young workers to gain experience. I strongly believe that raising the minimum wage would only cause distrubtion and hardship.
Raising BC’s minimum wage could cost more than 52,000 jobs and reduce opportunities for young workers
Summary
This article is explaining, why BC shouldn't raise the minimum wage of $8 to $10. This would only result in the loss of many jobs; up to 52,000 jobs. In the study of the Economic Effects of Increasing BC’s Minimum Wage, it was found that the increasing of the minimum wage will result in the job loss from 10,898 to 52,200. For the past couple of years the unions has been trying to raise the minimum wage. Studies found that increasing in minimum wage will make it a huge disadvantage and it has a significant negative impact on employment for those who have a lower skill level and the young. In the past there was a 10% increase in the minimum wage across Canada, with this increase the employment decreased for young workers ages 15-24 by 3 to 6%. Since the raise in wage is so drastic, this event can result in 4.5-20% employment losses. There are also other negative to the raise in minimum wage; "fewer benefits and less training for workers. Higher minimum wages can also induce high school students to drop out of school and search for employment." There were statistics that found that there were 62,600 BC workers earning $8 per hour in 2007 and more than 56% of these were young workers ages from 14 to 24. Eighty seven percent of them lived at home with family. “Many of the remaining individuals earning minimum wages are adults supplementing their family income with part-time work during child-rearing years or after retirement." The increase of BC's minimum wage will only result the loss of jobs and opportunities and this will make life difficult for those with low income and those who live in poverty.
Connection
In chapter 16 we have learnt the benefits with becoming an employee. One of them is UI (EI) which is unemployment insurance ( employment insurance), this fund is provided from a portion of employed worker's pay into the large pool of money and the employer is suppose to match this amount of money. If the worker has worked for a long enough period of time and has contribute to this fund. If this worker is unemployed, they are entitled to receive payment out of the fund. Since UI is meant for unemployed workers, the raising of the minimum wage from $8 to $ 10 will only cause a large amount of lay-offs; this may cause the EI fund to run on low due to the huge amount of unemployed workers. With fewer workers contributing to this fund it also creates a problem. What will happen if they run out of the fund?
Reflection
In my opinion, if raising the minimum wage would only do more harm than good; we should just stick to $8 an hour for minimum wage. This article shows that increasing the minimum wage would lead to thousands of people to lose their jobs, especially in the young (between ages 15-24) and the citizens who have less skill. If raising the minimum wage will only cause a burden and a load for the citizen of Canada, why would anyone still consider about raising the wage? Raising the wage would only benefit a small amount of people, this will only cause unemployment rate to raise and the goal of having high standard of living for Canadian citizen would just be a joke. Having the minimum wage as it is provides more opportunities for the young workers to gain experience. I strongly believe that raising the minimum wage would only cause distrubtion and hardship.
