Recently announced rise in minimum wage in British Columbia (B.C.) is going to come in effect from today 1st of May 2011.
The government of B.C. has decided last month to raise the level of minimum wages in the province to $10.25 per hour from $8.00 as it was paid before. This wage rise is going to bring $2.25 hike from the workers used to get previously for an hour job. It is proposed that this rise will be supported by adding on additional 75 cents in the coming 6 months that is November and next in May 2012.
Being good news for the entry level workers it has also showed some of its negative effects. But not everybody will be able to relish this rise. The rise is concentrated basically for the minimum wages only.
According to a report by the senior economist of Fraser Institute, Niels Veldhuis, he mentioned that no doubt that this hike in minimum wages is result of good intentions, but it may also lead to some negative consequences which may turn out harmful for the country’s economy.
It is expected that it may lead to cut down in number of jobs which may create problem in the future. According to the report, the institute is expecting to lose high number of jobs ranging from 9,000 to 52,000 which forms a cause for the worry. It is also believed most of lose would be faced by the new and young people.
It will also affect the business houses of the province, the economists further states, “As the government is increasing the labor costs, the business people will obviously hire fewer workers or may also reduce their working hours to control their cost.
A large number of business owners of the province, says the hike in this minimum wage will force them to carry on with few number of employees or they will have to make a cut on their working hours.
Currently the minimum wage by 75 cents but the alcohol servers will experience the increase with 50 cents per hour and till will only rise till $9 in the next year.
Before such decision of wage rise in the province, it was having the lowest minimum wages in the whole country with $8 per hour and it was closely followed by the $8.80 by the Alberta.