Guess what happens when you raise the minimum wage

Another country beset by a liberal-elite virtue-signalling pantywaist is Canada.

Their unemployment rate surged in the last month… here’s why:

After two straight months of stellar employment numbers, Canada’s economy shed 88,000 jobs in January alone, a number that far surpassed economists’ expectations, some of whom had projected a 10,000 increase. The country’s unemployment rate edged up by 0.1 percent, and now stands at 5.9 percent.

The job losses were led by Ontario, which saw a decline of 51,000 mostly part-time jobs, fuelling speculation that the minimum wage hike was to blame.

“The hike in Ontario’s minimum wage to $14 an hour on January 1st, from $11.60, had a devastating impact, with 51,000 part-time jobs lost in the first month alone,” wrote Paul Ashworth, Chief North American Economist at Capital Economics.

“Overall, a mysterious mix of good and bad, with the latter’s impact blunted by how strong job gains were in the lead-up to these figures,” CIBC chief economist Avery Shenfeld wrote in a morning note.

“January saw an (88,000) drop in employment, reversing about half of the spectacular gains we registered late last year. But the details also looking wonky, with all of the job losses in part-time work,” wrote Shenfeld.

Put up the minimum wage, and people lose their jobs. Our own government is doing the same thing. Watch the numbers of employed drop.

But further inspection of Statistics Canada data reveals that there were only marginal losses in the food services and accommodation sectors — an industry that one would expect to be most impacted by any kind of minimum wage hike. The sector shed just 2,200 jobs between January 2017 and January 2018.

“I do not think the minimum wage hike was to blame for January’s job numbers,” James Marple, TD Bank Senior Economist, told VICE Money. “I think you need to take this month’s labour force survey with a grain of salt. We had two straight months of job gains, and today’s numbers are more consistent with our underlying pace of growth.”

In the last 12 months, Canada’s economy has seen a sharp increase in jobs — 288,700 to be exact. Most of the gains came in November and December.

“This is probably a natural pullback from very strong labour market growth in 2017,” Frances Donald, Senior Economist at Manulife Asset Management told the Business News Network this morning.

Ashworth disagrees, arguing that the demographic breakdown of jobs in January clearly shows how minimum wage hikes in Ontario impacted employment numberscore-aged women and older workers saw a sharp decline in employment. Indeed, the Labour Force Survey shows that employment among core-aged women, that is, those aged between 25 and 54, declined by 54,000 in January. Among people aged 55 and older, employment fell by 24,000.

In early January, the Bank of Canada put out a report estimating that minimum wage hikes across the country would result in 60,000 fewer jobs by 2019. But many experts point out that that doesn’t necessarily mean jobs will be lost, but rather, that 60,000 fewer jobs will be created.

On Thursday, British Columbia announced that it would hike its minimum wage gradually to $15.20 by 2021, from the current rate of $11.35. That timeline, said B.C. Premier John Horgan is aimed at “finding a balance between allowing businesses to predict their needs and giving hope to about 400,000 of the lowest-paid workers in the province.”

Those hopes will be dashed as people lose jobs.

Basic economics tells us this will happen. It’s a shame Grant Robertson doesn’t seem to have any inkling at what is about to befall him.

 

-Vice News


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As much at home writing editorials as being the subject of them, Cam has won awards, including the Canon Media Award for his work on the Len Brown/Bevan Chuang story.  And when he’s not creating the news, he tends to be in it, with protagonists using the courts, media and social media to deliver financial as well as death threats.

They say that news is something that someone, somewhere, wants kept quiet.   Cam Slater doesn’t do quiet, and as a result he is a polarising, controversial but highly effective journalist that takes no prisoners.

He is fearless in his pursuit of a story.

Love him or loathe him.  But you can’t ignore him.

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