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New Brunswick
Minimum Wage Factsheet
Post-Secondary Education, Training and Labour
September 2016
Contents
INTRODUCTION ............................................................................................................................... 3
PART 1 - MINIMUM WAGE RATES IN NEW BRUNSWICK ................................................................ 3
1.1 Recent history of minimum wage in New Brunswick ............................................................ 3
1.2 The actual minimum wage rate and the minimum wage rate in 2016 dollars ..................... 3
1.3 The minimum wage as a proportion of provincial median wage.......................................... 4
PART 2 – MINIMUM WAGE EARNERS IN NEW BRUNSWICK .......................................................... 5
2.1 2015 profile............................................................................................................................ 5
2.2 Ten year trend 2006-2015: Changes in the distribution of subgroups of minimum wage
earners ......................................................................................................................................... 5
PART 3 – CANADIAN COMPARISONS .............................................................................................. 6
3.1 Minimum wage rates in Canada ............................................................................................ 6
3.2 Percentage of employees earning minimum wage, 2010-2015 ........................................... 7
3.3 Percentage of Employees Earning Minimum Wage by Province, 2015 ................................ 7
PART 4 – COST OF LIVING ............................................................................................................... 8
4.1 Consumer Price Index ............................................................................................................ 8
4.2 Consumer Price Index growth rate, 2007-2015 .................................................................... 9
4.3 Percentage change in total Consumer Price Index for Canada and provinces, 2014-2015 .. 9
PART 5 – ECONOMIC CONDITIONS ............................................................................................... 10
5.1 Economic Conditions ........................................................................................................... 10
5.2 Low income in New Brunswick in 2014 ............................................................................... 11
Page 2 of 11
INTRODUCTION
The New Brunswick Minimum Wage Factsheet provides basic information about changes to the
provincial minimum wage rate, minimum wage earners, the cost of living and economic
conditions in the province, as well as comparisons with other Canadian provinces and
territories.
PART 1 - MINIMUM WAGE RATES IN NEW BRUNSWICK
1.1 Recent history of minimum wage in New Brunswick
The minimum wage rate in New Brunswick is currently set at $10.65 per hour. Over the last ten
years, there have been 11 changes to the minimum wage rate:
Date of Change
January 5, 2007
July 1, 2007
March 31, 2008
April 15, 2009
September 1, 2009
April 1, 2010
September 1, 2010
April 1, 2011
April 1, 2012
December 31, 2014
April 1, 2016
Minimum Hourly Wage
Rate
$ 7.00
$ 7.25
$ 7.75
$ 8.00
$ 8.25
$ 8.50
$ 9.00
$ 9.50
$ 10.00
$ 10.30
$ 10.65
Source: Department of Post-Secondary Education, Training and Labour
1.2 The actual minimum wage rate and the minimum wage rate in 2016 dollars 1
As shown in the graph below, the minimum wage rate in 2016 dollars peaked in 1976 at $11.72
per hour, followed by a sharp decrease to a low point of $7.32 per hour in 1988. During this
period, although the actual minimum wage rate was increasing, those changes did not keep
pace with inflation, resulting in lower real wages for minimum wage earners. The rate in 2016
dollars remained just below $8.00 per hour for the next 18 years, up to 2006, which means that
changes in the actual rate kept pace with inflation during this time. In 2007, the rate in 2016
dollars began a steady increase to over $10.00 per hour in 2011, thus representing a time when
changes in the actual minimum wage rate exceeded inflation, resulting in real wage increases.
Since 2012, increases in the actual minimum wage rate have kept pace with but not exceeded
inflation, resulting in stable real wages for minimum wage earners.
1
The minimum wage in 2016 dollars represents the real value of the actual minimum wage rate by
adjusting for inflation.
Page 3 of 11
Actual Minimum Wage Rate and the Minimum Wage Rate in 2016 Dollars:
Year-Over-Year Change, December 1974-2015
$ per hour
$12
$9
$6
$3
Actual Minimum Wage Rate
2015
2010
2005
2000
1995
1990
1985
1980
1975
$0
Minimum Wage Rate in 2016 Dollars
Source: EDSC Minimum Wage Database and the Bank of Canada Inflation Calculator
1.3 The minimum wage as a proportion of provincial median wage
Median wage is the midpoint hourly wage rate, where half of New Brunswick employees earn
more and half earn less. The minimum wage expressed as a proportion of median wage is a
measure used to understand how the minimum wage relates to all wages in the economy. As
shown in the graph below, the minimum wage as a proportion of the provincial median wage
steadily increased from 2007 to 2013, but has since decreased. In 2015, New Brunswick had the
third highest minimum wage as a share of median wage among Canadian provinces.
In April 2016, the minimum wage as a percentage of the median wage in New Brunswick was
higher for certain groups:
•
•
•
94% of youth aged 15-24;
60% of women compared to 53% of men; and
89% of part-time employees compared to 53% of full-time employees.
Minimum Wage as a Proportion of Median Wage:
Monthly Change, January 2000-April 2016
60%
55%
50%
45%
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
40%
Sources: ESDC Minimum Wage Database and Statistics Canada, CANSIM Table 282-0071
Page 4 of 11
PART 2 – MINIMUM WAGE EARNERS IN NEW BRUNSWICK
2.1 2015 profile
In 2015, there were 18,500 minimum wage earners in New Brunswick, representing 6% of all
employees in the province. Of these minimum wage earners, the dominant groups are
teenagers, women, part-time employees, non-unionized employees, and those who had a high
school diploma or less:
•
•
•
•
•
•
•
•
•
•
•
•
54% were between the ages of 15 and 24.
The incidence of receiving minimum wage was much lower among older age groups, with
only 3% of employees at the core working age (25-54) and 4% of employees 55 years of age
or older being minimum wage earners.
56% were female.
54% worked part-time.
69% were permanently employed.
97% were not unionized.
50% had less than 12 months of job tenure.
59% had a high school diploma or less.
28% had completed a post-secondary education program.
68% worked in sales or service occupations.
34% worked in retail trade.
24% worked in accommodation and food services.
2.2 Ten year trend 2006-2015: Changes in the distribution of subgroups of minimum
wage earners
Subgroups
Age Groups:
Age 15 to 19
Age 20 to 24
Age 25 to 54
Age 55+
Gender:
Male
Female
Employment Type:
Full-time
Part-time
Percentage of
Minimum Wage
Earners in 2006
Percentage of
Minimum Wage
Earners in 2015
Difference
47.3%
12.4%
31.8%
9.3%
33.5%
20.0%
31.9%
14.1%
-13.8 (% pts)
+7.6 (% pts)
+0.1 (% pts)
+4.8 (% pts)
38.8%
61.2%
44.3%
55.7%
+5.5 (% pts)
-5.5 (% pts)
41.9%
58.1%
47.0%
53.5%
+5.1 (% pts)
-4.6 (% pts)
Page 5 of 11
Subgroups
Job Permanency:
Permanent
Temporary
Union Coverage:
Unionized
Not Unionized
Job Tenure:
Less than 1 Year
1 to 5 Years
Over 5 Years
Education Level:
High School or Less
Post-Secondary
Credential
Occupation:
Sales & Service Workers
Percentage of
Minimum Wage
Earners in 2006
Percentage of
Minimum Wage
Earners in 2015
Difference
65.9%
33.3%
68.6%
31.4%
+2.7 (% pts)
-1.9 (% pts)
4.7%
94.6%
3.2%
97.3%
-1.5 (% pts)
+2.7 (% pts)
60.5%
26.4%
13.2%
50.3%
33.5%
16.2%
-10.2 (% pts)
+7.1 (% pts)
+3 (% pts)
69.8%
58.9%
-10.9 (% pts)
18.6%
28.1%
+9.5 (% pts)
70.5%
67.6%
-2.9 (% pts)
Note: Rounding errors may exist
Source: Department of Post-Secondary Education, Training and Labour
PART 3 – CANADIAN COMPARISONS
3.1 Minimum wage rates in Canada
As of April 1, 2016, New Brunswick had the eighth highest minimum wage rate across Canada.
Jurisdiction
Nunavut
Northwest Territories
Ontario
Alberta
Yukon
Manitoba
Nova Scotia
New Brunswick
Quebec
Newfoundland and Labrador
Minimum Wages as of
April 1, 2016
$ 13.00
$ 12.50
$ 11.25
$ 11.20
$ 11.07
$ 11.00
$ 10.70
$ 10.65
$ 10.55
$ 10.50
Page 6 of 11
Minimum Wages as of
April 1, 2016
$ 10.50
$ 10.50
$ 10.45
Jurisdiction
Prince Edward Island
Saskatchewan
British Columbia
3.2 Percentage of employees earning minimum wage, 2010-2015
Although the Canadian average has remained relatively constant since 2010, the percentage of
employees earning minimum wage increased from 6.6% in 2010 to 9.7% in 2012, and has
decreased every year since, to its current level of 6%.
Jurisdiction
Canadian average
2010
2011
2012
2013
2014
2015
7.1%
7.1%
7.2%
6.9%
7.2%
7.1%
6.6%
7.7%
9.7%
8.0%
6.7%
6.0%
2
New Brunswick
3.3 Percentage of Employees Earning Minimum Wage by Province, 2015
In 2015, New Brunswick, tied with both Quebec and Newfoundland and Labrador, had the fifth
lowest percentage of employees earning minimum wage.
ON
10.6%
Canada
7.1%
NL
6.0%
PE
7.5%
NS
7.1%
NB
6.0%
QC
6.0%
MB
5.4%
BC
5.0%
SK
3.0%
AB
2.7%
2
Based on Labour Force Survey definitions where the total for Canada is the sum of the provincial
estimates.
Page 7 of 11
PART 4 – COST OF LIVING
4.1 Consumer Price Index
The Consumer Price Index (CPI) is a measure of inflation from the perspective of a typical
Canadian consumer. It is calculated by averaging the changes in the price of a fixed basket of
consumer goods and services, each of which is weighted according to consumer spending
patterns. Basket weights are updated every two years based on Statistics Canada’s Survey of
Household Spending.
As shown in the table below, the price of consumer goods and services in New Brunswick
increased by 0.5% between 2014 and 2015. The category of consumer spending that increased
the most was food, which increased in price by 4.8%. This was offset by a decrease in the cost
of transportation, largely due to continued low interest rates and lower gasoline prices. There
were modest increases to costs associated with household operations, furnishings and
equipment (1.8%); health and personal care (1.6%); recreation, education and reading (1.7%);
and alcoholic beverages and tobacco products (1.5%). The prices of shelter and clothing and
footwear were stable during this time period, showing small increases of 0.2% and 0.3%,
respectively.
New Brunswick total CPI and product groups
All-items
Food
Shelter
Household operations, furnishings and
equipment
Clothing and footwear
Transportation
Health and personal care
Recreation, education and reading
Alcoholic beverages and tobacco products
Percentage change
from 2014 to 2015
0.5%
4.8%
0.2%
Basket weights in
2013
100.0%
16.7%
22.2%
1.8%
14.3%
0.3%
-4.0%
1.6%
1.7%
1.5%
6.2%
21.9%
5.2%
10.6%
3.0%
Source: Statistics Canada, CANSIM Table 326-0021 and 326-0031.
Page 8 of 11
4.2 Consumer Price Index growth rate, 2007-2015
Over time, CPI growth in New Brunswick has been similar to that seen throughout Canada.
During the 2008-2009 recession, there was only a slight increase in the cost of consumer goods
and services.
2007 to 2008 to 2009 to 2010 to 2011 to 2012 to 2013 to 2014 to
2008
2009
2010
2011
2012
2013
2014
2015
CPI growth
Canada
2.3%
0.3%
1.8%
2.9%
1.5%
0.9%
2.0%
1.1%
New Brunswick
1.7%
0.3%
2.1%
3.5%
1.7%
0.8%
1.5%
0.5%
Source: Statistics Canada, CANSIM Table 326-0021.
4.3 Percentage change in total Consumer Price Index for Canada and provinces, 20142015
Canadians paid 1.1% more for consumer goods and services in 2015 than they did in 2014,
roughly twice the increase seen in New Brunswick. Prince Edward Island was the only province
to experience a reduction in the costs of consumer goods and services. New Brunswick has not
experienced negative CPI change over the past 30 years.
SK
1.6%
Canada
1.1%
QC
1.1%
NL
0.5%
NS
0.4%
ON
1.2%
MB
1.2%
AB
1.1%
BC
1.1%
NB
0.5%
PE
-0.6%
Source: Statistics Canada, CANSIM Table 326-0021.
Page 9 of 11
PART 5 – ECONOMIC CONDITIONS
5.1 Economic Conditions
The provincial economy continues to be impacted by the recession that began in Canada in
2008. Canada and New Brunswick both saw a reduction in real Gross Domestic Product (GDP)3
growth from 2008 to 2009. New Brunswick’s real GDP growth has trailed the national average
every year from 2009 to 2014, although preliminary estimates show an increase of 1.9% in New
Brunswick for 2015. Employment levels have declined every year in New Brunswick since 2008,
with the exception of a small increase between 2012 and 2013. New Brunswick’s
unemployment rate increased from 8.5% in 2008 to a high of 10.3% in 2013. The
unemployment rate dropped in 2014 and 2015, although decreases in employment for these
years suggest that this was largely due to individuals leaving the labour force.
Real GDP growth rate:
2007 to 2008 to 2009 to 2010 to 2011 to 2012 to 2013 to 2014 to
Geography
2008
2009
2010
2011
2012
2013
2014
2015
Canada
1.0%
-2.9%
3.1%
3.1%
1.7%
2.2%
2.5%
0.9%*
New Brunswick
0.8%
-1.5%
2.0%
0.2%
-1.0%
0.4%
-0.3%
1.9%*
*Note: 2015 real GDP data is preliminary and is subject to change.
Source: Statistics Canada, CANSIM Table 384-0038, 379-0030 and 379-0031.
Employment growth rate:
2007 to 2008 to 2009 to 2010 to 2011 to 2012 to 2013 to 2014 to
Geography
2008
2009
2010
2011
2012
2013
2014
2015
Canada
1.4%
-1.7%
1.4%
1.5%
1.3%
1.5%
0.6%
0.8%
New Brunswick
0.9%
-0.2%
-0.5%
-0.7%
-0.7%
0.4%
-0.2%
-0.6%
Source: Statistics Canada, CANSIM Table 282-0002.
Unemployment rate:
Geography
2008
2009
2010
2011
2012
2013
2014
2015
Canada
6.1%
8.3%
8.1%
7.5%
7.3%
7.1%
6.9%
6.9%
New Brunswick
8.5%
8.7%
9.2%
9.5%
10.2%
10.3%
9.9%
9.8%
Source: Statistics Canada, CANSIM Table 282-0002.
3
GDP is the total value of goods and services in the economy. Increases and decreases over time
indicate expansion and contraction of the economy. Real GDP adjusts for inflation.
Page 10 of 11
5.2 Low income in New Brunswick in 2014
There are three types of threshold used to define low income households: the low income
measure (LIM), low income cut-offs (LICOs), and Market Basket Measure (MBM). The LIM is a
threshold representing a fixed percentage (50%) of median income adjusted by household size.
LICOs represent thresholds below which a family can be expected to spend 20 percentage
points more than the average family on food, shelter and clothing. LICOs vary according to
family and community size, and may be calculated before or after tax. The MBM is a measure of
low income based on the cost of a specific basket of goods and services representing a modest,
basic standard of living for a reference family of two adults and two children. The MBM can be
calculated at a finer geographic level than LICOs.
Estimates for the number of people living in low income households vary according to which
measure is used. In 2014, 15.9% of the population of New Brunswick lived in a household
earning less than the LIM threshold. The number of New Brunswickers living below the MBM
threshold was smaller, at 12.3% of the population. The LICOs generated the lowest estimates,
with 10.1% of the province living in households below the before-tax LICO threshold, and 6.7%
living in households below the after-tax LICO threshold.
Low income measure
Low income measure after tax (LIM)
Low income cut-offs after tax (LICO)
Low income cut-offs before tax (LICO)
Market basket measure (MBM)
Number of persons in
low income
116,000
49,000
74,000
90,000
Percentage of persons in
low income
15.9%
6.7%
10.1%
12.3%
Source: Statistics Canada, CANSIM Table 206-0041.
Page 11 of 11