Gap between living, minimum wages causing concern

By KENDALL KING on February 15, 2023.

kking@medicinehatnews.com

Estimated at $17.50 per hour, Medicine Hat is said to have the lowest living wage of Alberta’s 15 largest municipalities, but the disparity between it and the province’s $15 minimum wage is of concern to experts and community members alike.

Calculated annually by Living Wage Alberta Network, an alliance of community organizations, employers and municipalities across the province, a living wage is an estimated average wage community members would need to earn per hour to live in a given city.

“We use the best and most recent data that we can find to figure out how much it costs to live in each community (in relation to) three different household types,” network co-ordinator Ryan Lacanilao told the News. “A family of four with two children and two working adults, a lone-parent family with one child and one working adult, and a single individual who is living alone.

“We gather data for expenses for each of those three different households and figure out how much each of those households needs to cover their expenses after government benefits and taxes. Then, we take the weighted average of those to figure out what the living wage is.”

Several types of expenses are considered in data collection: primarily shelter, food, transportation, clothing/footwear, health care and childcare and tuition if applicable, as well as other expenses, like entertainment, recreation and community activities.

Calculations for 2022 found only three Alberta municipalities had a living wage under $20 per hour, with Medicine Hat the lowest at $17.50 and Grande Prairie and Red Deer tying at $19.65. Lethbridge came in at $20.30, Edmonton at $21.40 and Calgary at $22.40. Canmore was determined the most expensive municipality to live in with a living wage of $32.75 per hour.

Medicine Hat-specific data shows families of four incur the greatest overall living expenses, followed by lone-parent families, then single-person households. But when government benefits and taxes are deducted, lone-parent families are left with the highest living expenses a wage must cover, followed by single-person households, then families of four.

Subsequently, the estimated living wage for a lone-parent family in Medicine Hat is $19.05 per hour, a single-person household is $18.10 per hour, and a family of four is $16.10 per hour, averaging at $17.50.

“The living wage in any of these communities that we did a calculation for is above the minimum wage,” said Lacanilao. “So, generally, if you are making a minimum wage and living in Alberta, the chances are you are going to have to compromise on some expenses.”

A network survey of 10 local residents who earn less than the city’s estimated living wage confirmed Lacanilao’s statement, as the majority of those surveyed were living paycheque-to-paycheque, with no money left after paying for basic needs to afford entertainment, recreation, contingency, etc. And several surveyed had to access savings just to cover basic needs.

Lacanilao says such experiences have an array of negative effects on an individual’s physical and mental health and well being.

“We have heard stories of people cutting their prescription pills in half to save money, people who compromise by not eating healthy because it’s cheaper, or people who don’t participate in the community the way they would have if they were making that living wage,” said Lacanilao. “If you’re not making a living wage, you’re probably making some tough choices.”

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