Bank of Canada fears job losses
The Bank of Canada has come out with statistics stating there could be some 60,000 fewer jobs by 2019 in view of the increases in minimum wages across the country, but labor income will be higher due to the increases. The central bank in a report stated the consumer price index could be boosted by about 0.1 percentage points on average and real gross domestic product could be cut by 0.1% by early 2019. The number of jobs lost was based on a 0.3% decline in the number of hours worked, while aggregate real wages were estimated to increase 0.7%. The report also said if the average working hours declined following the increase in the minimum wage, the number of jobs lost would also be lower. Canada has raised its minimum wage to $14 per hour on 1 January 2018 from $11.60 and plans to increase it to $15 in 2019.