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Increase Minimum Wage Essay

928 Words4 Pages

Ontario is going to increase increase the minimum wage to $15 an hour in two next years, $14 an hour on Jan 2018 and $ 15 on Jan 2019. Before the minimum wage increase to $15, however, there will be an election in June 2018 (Smith.J , Jones.A, 2017). Alberta’s government fist announced that the $ 15 minume wage will be effective from beginning of 2018. This increase will have many small and big effects on the economy and The most impact is on employment sector.
Impact on employment:
The first impact is rise employment rate in different sectors, while consumers have more purchasing ability and more money to spend, produce of products will increase. Restaurants, groceries, clothes and some different industries will attract new customers while their minimum wage is increased. Serving new customers, increase the demand for new workers (Rozworski, 2017).
Medium and big firms such as banks, usually have more employees with higher wage. So, increase the minimum wage has a little effect on them while the number of employees with minimum wage are not big. Paul Sonn senior counsel with the National Employment Law Project, a worker advocacy …show more content…

While some economists argue that increasing minimum wage is good for Canadian economy, others believe that this huge percent of differenece will cause inflation, increase unemployment and labour costs (Rozworski, 2017). However, if employees with minimum wage can save their jobs they can spend more on household the Real GDP will increase and it has a positive impact on economy. However some employees will loose their jobs because of the increase in minimum wage, many other workers will meet the higher wage and they can improve their living. Increasing minimum wage, results in raise of demand for goods. Increasing the need for goods, will rise the need for workers in businesses and in long term will help to reduce the unemployment

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