N.W.T.'s minimum wage not a livable salary in largest communities, report says

The minimum wage in the Northwest Territoriesminimum isbelow a livable standard in the territory's largest communities,according to a newly releasedreportreleased from a local non-profit.

However, there has been a decrease in the cost of living since 2019, the report says.

"A living wage means a lot to low income earners," Suzette Montreuil of Alternatives North told Loren McGinnis, host of CBC's The Trailbreaker.

"It decreases the stress of meeting their basic expenses, it helps to avoid the need for a second job."

According to the territorial government website,the minimum wage across the territory is $15.20 per hour.

Alternatives North posted its 2022 report in late March, which found that in order to meet a livable wage, two adults in a family of four in Yellowknife would each have tomake $23.28 an hour.

The livable wage would be$21.32 an hour in Hay River, $22.59 an hour in Inuvik and $17.81 an hourin Fort Smith, the report says.

Each of these communities, though, experienced a drop in the necessary livingwage since the previous report, except Fort Smith, whichwasn't featured in the 2019 report.

The decreases were $0.67 in Yellowknife,$3.44 inHay Riverand $1.19 inInuvik.

The report uses a "bare bones budget" anda formula that incorporates annual expenses, taxes, employment income and hoursof paid work per year to determine the livable wage.

Costs of living increasing for single people

Michel Haener, an Alberta-based economist who workedon the report, said a major finding was the impact of government transfers and tax structures.

That includes the Canada child benefit, a federal tax deduction, and the N.W.T. child benefit.

Haener said many families who might be referred to as "working poor" can have more disposable income as a result of programs like this.

But that doesn't extend to single people living in these communities.

"For single persons, living costs are driving upwards and they're not getting that same benefit from government transfer programs," she said.

"It's becoming more difficult for single persons to get by and have a decent standard of living."

According to the report, a living wage for a single person in Yellowknife is$24.05. It's $19.74 in Hay River, $18.87 in Fort Smith and $23.38in Inuvik.

'Get the word out'

Montreuil said the objective of the reportis to inform employers.

"We want to get the word out [about]what people need to make a decent living," she said.

Montreuil encouraged any N.W.T. employers who already offeralivingwage asstandard starting payto reach out and be recognized for their efforts.

She said the benefits of a livingwage extend beyond the employee, as employers that pay this wage have an easier time retaining workers.

The benefits also extend to the rest of the community, because employees making a living wage "can spend whatever money they have locally," she said.

In late April, Alternatives North will releasea report that analyzes the living wage for the smaller communities in the N.W.T.,Montreuil said.