Alberta presents a diverse economic landscape, where the cost of living varies significantly across cities.
This disparity is evident when comparing Red Deer, one of Alberta’s most affordable cities, with Canmore, its most expensive.
A living wage provides a clear lens for this comparison., The wage is set at the hourly rate at which a person can cover basic expenses and maintain a modest standard of living.
Red Deer’s Living Wage
Red Deer’s living wage is currently set at $18.75 per hour, according to the Alberta Living Wage Network (ALWN).
This figure, although lower than last year’s $19.65, is higher than previous years and significantly above Alberta’s minimum wage of $15 per hour.
Despite rising costs, particularly the cost of shelter and food, government affordability policies and benefits have offset some costs, driving the living wage downward.
Still, a family of four in Red Deer requires an annual income of $78,601, to pay for basics like food, shelter, transportation, and childcare. In the 2018 City report, that number was $73,013, a change of 7.7 percent.
Canmore’s Struggle with Affordability
In stark contrast, Canmore’s living wage is a staggering $38.80 per hour, over double the rate in Red Deer.
Mayor Sean Krausert attributes the inflated rate primarily to housing costs.
The fall labour market report from the Job Resource Centre (JRC) benchmarks the typical rent for a one-bedroom in Canmore is $2,347, while a two-bedroom costs $2,886, and a three-bedroom is priced at $4,439.
With housing costs eating a sizable portion of Canmorites’ wages, the city has consistently topped the list of the most expensive Alberta cities in recent years.
Also, Canmore has the distinction of having the highest Gini Index of anywhere in Canada.
This is one index no city wants to top.
The Gini Index is a measure of income inequality; the higher the index, the wider the income disparity.
In practical terms, this means that a large portion of the Canmore population has entry-level wages, often those associated with tourism, while others have higher-paying work. Even in the latter category, wages are below the living wage for the city.
Job advertisements posted through the JRC website indicate that social services and healthcare roles offered an average hourly wage of $29.31, trades and labour at $25.40, and office and administration positions at $24.64. In contrast, positions in the food services industry averaged $17.41 per hour, while sales and service roles averaged $18.78 per hour.
Mayor Krausert told the Cochrane Eagle, “If we’re to break down what would make the biggest difference for our living wage, it would come down to the cost of housing…”
“If we had sufficient attainable housing, whether for ownership or rent along the lines that is managed by Canmore Community Housing (CCH) and if we had a sufficient amount to meet the need, our living wage indicator would drop to be in line to those next highest like Calgary and Fort McMurray,”
Jasper, Fort McMurray, St. Albert and Calgary are the communities with the highest cost of living, with wages necessary coming in at $24.90, $24.50, $23.80 and $23.70, respectively.
Provincial and National Context
Alberta’s minimum wage, at $15 per hour, ranks among the lowest in Canada. It’s comparable to Newfoundland & Labrador, Nova Scotia, and PEI’s low rate..
Alberta’s lower wage is in contrast to higher minimum wages in regions like Yukon ($16.77) and British Columbia ($16.75).
It’s no wonder many Albertans face affordability challenges with the disparity between Alberta’s minimum wage and the living wage in cities like Canmore, Fort McMurray and Calgary.
Medicine Hat, with a living wage set at $17.35, is Alberta’s most affordable city. Even there, the living wage is still above what a minimum wage worker gets paid.
Government Response
The Alberta government has the impacts of high inflation and high interest rates, but rejects calls to raise the minimum wage, highlighting the potential consequences of increased costs for Albertans, particularly businesses.
Programs aimed at enhancing affordability, such as the national grocery rebate, Alberta’s affordability payments, and the provincial fuel tax relief initiative, have played a significant role in mitigating the rise in the necessary living wage.
Nonetheless, the Living Wage Network points out that these measures are temporary.
If these programs are phased out, the living wage could uptick in 2024
Alberta’s Ministry of Jobs, Economy and Trade‘s spokesperson, Andrea Smith, highlights several provincial initiatives to ease financial burdens. These include a law mandating a public vote before any hike in income tax rates, the ongoing absence of a provincial sales tax, and a temporary halt on fuel taxes.
Premier Smith is quick to point to the carbon tax as another reason for Albertans suffering higher living costs.
But neither Premier Smith nor the Minister mentioned that Alberta has the highest electricity rates in Canada due to deregulation.
Karen Kuprys, secretary-treasurer for the Alberta Federation of Labour (AFL), thinks the province needs to raise the minimum wage.
“We, of course, support moving up the minimum wage, which has been frozen for five years and is certainly below the living wage in all parts of the province,”
Kuprys believes that although increasing the minimum wage is essential, it will merely serve as a temporary fix unless the government pursues additional methods to assist Albertans.
The contrast between Red Deer and Canmore illustrates the varied economic realities within Alberta.
While government measures and benefits provide some relief, there is a clear need for continued and long-term focus on affordable housing, wage adjustments and less finger-pointing at the feds.
Balancing these needs with economic growth and stability remains a crucial challenge for Alberta’s policymakers.
