Minimum wage raise bites into summer jobs funds

Rising provincial minimum wages have cut into the reach of the Liberal government’s oft-touted increase to summer jobs spending by reducing the number of weekly hours being funded this year.

The Liberals have doubled spending on the politically popular program to approximately $220 million in order to boost the number of available jobs to 70,000 from about 35,000.

Newly released documents show the government was aware in late winter that there would be a drop in the number of hours funded through the program to meet the Liberal government’s summer jobs target.

A mid-March briefing note to Labour Minister Patty Hajdu warned of the planned reduction in the average hours per job funded through the program, moving to a national average of 30 hours a week in 2018 from 35 in 2017.

Officials wrote that the plan could raise concerns from members of Parliament who like to promote the spending, as well as from employers — particularly organizations that need help paying and attracting seasonal workers.

“The reduction is expected to affect organizations that require more weeks in order to sustain their operations (e.g. summer camp) and to attract enough potential applicants,” reads the briefing note, obtained by The Canadian Press under the access to information law.

Figures provided by the department suggest officials have eased some of the effects, but there has still been a decline in hours across all 10 provinces. There has been no reduction in funded hours in the territories.

A spokesperson for Hajdu said the government stands by its decision to double the number of jobs through the program, and is “continually looking at ways to improve the program” for students needing “quality summer job experience.”