In order to support a family with two children in Vancouver, two parents need to work the equivalent of two minimum wage jobs – each – to meet basic expenses.
These are the findings of a Canadian Centre for Policy Alternatives (CCPA) study released April 29, which found that the living wage per person in Vancouver rose by 2.4% or 48 cents over the past year to $20.10 per hour.
This is the amount needed to cover rent, child care, food and transportation, and takes into account government taxes, credits, deductions and subsidies.
Iglika Ivanova, study co-author and economist and public interest researcher for the CCPA, told Business in Vancouver that in this city, about 39% of two-parent families with two kids earn less than the living wage.
She said this is one of the reasons British Columbia has the highest rate of child poverty in the country.
"A lot of people think that child poverty is about being unemployed – and it's true that if you are unemployed you have a higher chance of being in poverty – but a lot of kids who have employed parents are also living in poverty," Ivanova said.
She said that 32% of poor kids in B.C. live in families where at least one parent works full-time, full-year.
In terms of individual cities, Vancouver has the second-highest rate of child poverty, second only to Windsor, Ontario, whose economy has been decimated by a severe downturn in the manufacturing sector.
Ivanova said the study recognizes that a lot of small businesses wouldn't even be able to consider paying employees $20.10 per hour, and emphasized that the CCPA wasn't calling for a mandatory minimum wage-increase.
"We recognize that it's not affordable for some businesses, so it's a call for large businesses and public sector organizations to be paying that, voluntarily," she said.
Ivanova said the total wage amount can be comprised of a combination of wage and employer-paid benefits.
