The demands for higher minimum wage in Manitoba are at the forefront of many discussions. At the same time, there is a push to increase exemptions for certain taxes. This is due in part to surrounding provinces that have already done both of these things to help the community and the economy. The cost of living continues to go up, and many households in Manitoba are struggling. They don’t like seeing so much of their money going to the government because of taxes either.
The truth is, workers with lower skill sets make less money. They are struggling to pay their household bills month after month. This includes those working in the hospitality industry. There aren’t as many factory jobs anymore due to so much automation being put in those locations. Increasing the minimum wage could backfire though. Would small businesses have to increase prices? Would they have to cut the hours of employees or lay them off?
It is suggested that thousands of jobs could be lost if the minimum wage goes up. This can harm those that are already struggling. They would go from not having enough income to having no income at all. It would also prove to be difficult for youth and first-time job seekers to find anything. The job market would be saturated with too many applicants for any available jobs.
In 1988, Manitoba ended the two-tier minimum wage. This was to prevent youth from being priced out of jobs. The U.K. continues to have four tiers for their minimum wage. It depends on age and other variables. Should Manitoba take a look at this type of structure rather than just raising minimum wage across the board?
There are benefits of doing so. The first is making it easier for youth to find jobs. At the same time, it would provide a higher wage for adults meeting certain production requirements. Working during high school and college can help youth put money aside for the future. It teaches them work ethic, time management, and other important skills.
Inflation could make it very hard for these younger individuals to get their first job. The Manitoba government must look at the pros and cons of each option. They need to look at a tiered system and see if it would help the economy. They also must look closely at tax exemptions they can offer to help lower-income homes.