Living wage analysis rates Lethbridge at $20.30 per hour
By Alejandra Pulido-Guzman - Lethbridge Herald on November 19, 2022.
LETHBRIDGE HERALDapulido@lethbridgeherald.com A new living wage has been calculated for 2022, which shows a significant increase from last year due to inflation and higher cost of living in many communities across the province.According to the to the Alberta Living Wage Network (ALWN) the living wage for the city of Lethbridge is $20.30 per hour.
A living wage reflects what earners in a family need to bring home based on the actual costs of living in a specific community. In Calgary the living wage is calculated at $22.40, in Edmonton at $21.40 and in Medicine Hat at $17.50.
Executive director of United Way of Lethbridge & South Western Alberta, Jaci Zalesak explained that some of the things that are taken into account when calculating the living wage are transportation cost, daycare cost, utilities, groceries, gas prices.
“You have to have a car in Lethbridge. Our transportation system stops at 11:00 at night and on Sundays it stops at 7, so if you work shift work or nursing, or factory worker, or have children who need to be taken to daycare, it does not accommodate as easy as other communities where bus system goes until three in the morning like Edmonton,” said Zalesak.
Living wages are rooted in the belief individuals and families should not just survive, but be able to live in dignity, and participate in their community. The living wage is defined as the hourly wage a worker needs to earn to cover their basic expenses and participate in the community.
The 2021 rates and previous have usually been based on the income needs of a family of four.
In 2022, rates have broadened and are based on three household types: A family of four, a lone-parent family with one young child and a single individual living alone.
The income needs for a single-parent family and a single individual living alone, can often be higher than for a family of four with two working adults, so this would push the living wage higher compared to previous years.
“It cost a little bit more for a single individual than a family of four, because the family receives subsidies from the government such Child Tax credits,” said Zalesak.
She said that in order to calculate the living wage of a community, they would survey different daycares or go through Alberta Health and calculate what the cost would be for groceries, and also taking into account what insurance providers are for rent.
“We would take a sampling of each item that we are researching and conduct what the average would be of all that and produce our calculations. We have a formula based on all that,” said Zalesak.
She said this is how they would calculate the weighted average across the three family thresholds and they came up with the living wage for Lethbridge which has gone up significantly from last year.
Zalesak said they encourage employers to think about the living wage when setting the wages for their employees. But they are not trying to cause more stress to employers on thinking that they have to pay something that is beyond their means.
“But it is something that adds stress to families or individuals when they are not able to make ends meet, because then they would have to resort to take on another job or two extra jobs and that causes burnout, stress and leaves less time for their families and that has a ripple effect on society,” said Zalesak.
A 2022 study on food bank usage reported 14.1 per cent of food bank clients reported employment as their main source of income. This clearly demonstrates wages in some industries are not in-line with the local cost of living.
For more information about Alberta Living Wage visit http://www.livingwagealberta.ca Follow @APulidoHerald on Twitter 4
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