Last week, Ontario's minimum wage raised from $11.60 to $14, with plans to increase it to $15 by 2019. Since then, employees' benefits have been cut, stores have shut down, and now, experts are revealing that 60,000 jobs could be lost.
Researchers at the Bank of Canada published a research note over the winter break, attempting to calculate what sort of economic impact the minimum wage hikes will have on Canada's economy.
The report paints a bleak picture of the effects: the official inflation rate is expected to be 0.1% higher because of this years' hikes, and Canada's economy could also see roughly 60,000 fewer jobs by 2019.
However, The Bank of Canada told CBC News that the report's views are solely those of the authors and may differ from the bank's official opinion. Other models the bank uses to show job losses show a wider range of results, from as little as 30,000 to as many as 136,000.
The central bank joins other reports in showing similar effects of the wage increase. Back in July, the Canadian Federation of Independent Business reported that 34% of Ontario’s small- and medium-sized businesses would consider selling, closing or moving their business as a result of the proposed increase.
No matter how you slice it, the result is the same: the minimum wage hike will - and is - resulting in job losses.