A higher percentage of people in Nanaimo are earning less than $20 per hour at their jobs than elsewhere in B.C., according to a new report. (Dreamstime)

By Alex Rawnsley

hourly rate

‘A particularly serious low wage problem:’ Nanaimo lags behind B.C. pace for living wages

May 30, 2024 | 6:05 AM

NANAIMO — An increase in the provincial minimum wage on Saturday isn’t going far enough to allow an ever-growing number of people locally to handle even their most basic necessities, according to a group studying cost of living.

The base hourly rate in B.C. will increase to $17.40 on Saturday, June 1, but falls well short of the current living wage for the Nanaimo region of $22.87, according to the Canadian Centre for Policy Alternatives.

The centre’s senior economist for the B.C. region Iglika Ivanova said the Nanaimo region was well behind the provincial curve for lower-paying jobs, with roughly 23 per cent of people locally earning less than $20 per hour.

“It does seem like Nanaimo does have a particularly serious low wage problem, more people earning less than $20 per hour. Across the province, we find in most cities it’s about 18 per cent…even when you look by economic region or province-wide, it’s also around 18 per cent of workers.”

Data from Statistics Canada, which was purchased by the Centre for the purpose of this report, also showed 34 per cent of Nanaimo residents earn less than the current living wage for the region.

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A ‘living wage’ is described as the hourly rate two adults must each make to support themselves and two children, including essential needs (food, shelter, transportation, childcare), participation in their community and the ability to gradually pay off debts.

Nanaimo’s rate has increased by around 40 per cent since 2021 when adults had to earn $16.33 each per hour to get by.

Rising rent and food costs are seen as the primary driver.

“The minimum wage has been going up by inflation as measured by Statistics Canada’s consumer price index and we have seen over the past few years the price of rent and food are going up significantly faster than the overall inflation.”

Ivanova said “it’s not ok” to have so many people well below what’s needed to get by.

She added there also tends to be a false narrative around conversations around minimum wage: people on it tend to be young, new to the workforce and will move into better paying jobs.

“While the number of people earning exactly the minimum wage tends to be small, when you go a few dollars above the minimum wage, you’re still talking about people who are struggling to make ends meet, who are not earning enough to cover the high cost of rent and food and all the other essentials in their community.”

Many turn to food banks to offset financial challenges, with Nanaimo’s Loaves and Fishes Community Food Bank saying the number of people using their service has steadily increased between 25-30 per cent on a yearly basis.

The report presented by the Centre also showed of the 11,600 workers in Nanaimo earning under $22.50 an hour, 61 per cent were women.

Ivanova added women and racial minorities continue to be overrepresented in jobs under the living wage for the area.

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