Rent costs are viewed as the main reason behind another jump in living wage required for Nanaimo, a number which has risen 40 per cent since 2021. (Jordan Davidson/NanaimoNewsNOW)

By Alex Rawnsley

basic needs

‘Rent costs are shooting up:’ housing drives 11% spike in Nanaimo’s living wage

Nov 9, 2023 | 3:16 PM

NANAIMO — One of Canada’s fastest growing areas is also becoming one of the countries most expensive to live comfortably.

Living Wage B.C. published its calculations of the hourly amount two working parents must each make to support themselves and two young children, and pay for just basic necessities such as food, housing, childcare and transportation.

Nanaimo’s rate this year was $22.87 per hour, per person, an increase of 11.6 per cent from the 2022 rate of $20.49. Rising housing costs are seen as the primary driver.

“The cost of housing is increasing everywhere in particular for those people who have to move,” Anastasia French, provincial manager for Living Wage for Families B.C., said. “People who are renting are protected relatively by rent control measures, but as soon as someone has to move…their rent costs are shooting up.”

The organization also reported Nanaimo saw the highest living wage increase among all surveyed B.C. communities in 2023.

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Housing costs, and food price increases spurred by inflation have seen a living wage in the Nanaimo area increase by over 40 per cent in just two years.

Living Wage reported a required rate of $16.33 per hour, per person, would cover basic needs in 2021.

French said the required living wage is increasing much faster than inflation, and significantly higher than average salaries or hourly rates in the region.

“Families who are not making the living wage are faced with really difficult choices. They cut back on essentials, like do they buy less gas or buy less groceries, or do they work additional hours to make ends meet.”

Those extra shifts however come at the expense of time with families, friends or personal time.

Five communities on Vancouver Island were included in the 2023 Living Wages survey, among around 20 province wide. (Living Wage for Families B.C.)

Metro Vancouver led B.C. with a living wage of $25.68 per hour, with Victoria ($25.40), Sunshine Coast ($25.61) and Kelowna ($24.60) also proving pricey.

Both the Fraser Valley and Dawson Creek were the cheapest areas to live, among those where data is collected, each around $20.60.

Minimum wage in B.C. however is $16.75 per hour.

“Life is really expensive right now and the living wage really reflects how much it costs to be able to get by,” French added. “The living wage that is five dollars an hour than the minimum wage…it shows how difficult it is for those workers who are trying to get by.”

Living Wage for Families B.C. works with local community groups to track and calculate the rate every year.

No data was available for other mid-Island communities including Parksville or Qualicum.

They also campaign government for action on affordability and work with businesses to enact living wages for their employees.

French said over 400 businesses across the province have made the commitment to pay their communities living wage, which she said typically reduces employee turnover, increases recruitment success and results in a happier, more productive workforce.

She admitted however it is a challenge for business to juggle increasing costs everywhere and said action needed to come from the province to address many issues, in particular the housing crisis.

More on the 2023 Living Wage figures is available through the organization’s website.

— with files from Bill Nation, 97.3 The Eagle

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