Ottawa has landed on an undesirable list, topping the charts for the steepest increase in living wage among 10 regions in Ontario, as per a non-profit group’s recent report.
The Ontario Living Wage Network, which assesses how much workers in various regions need to earn per hour to afford basic living expenses, revealed that Ottawa’s living wage spiked by 12%, reaching $21.95. This marks the highest year-over-year increase among the regions surveyed.
In the network’s latest annual ranking, Ottawa secured the third spot in terms of living wage, trailing behind the Greater Toronto Area and Grey Bruce Perth Huron Simcoe in southwestern Ontario.
According to Craig Pickthorne from the Ontario Living Wage Network, recent hikes in food and rent costs have particularly impacted Ottawa residents.
Despite being a part of an annual incremental increase, living wages never decrease, Pickthorne explained. The average cost of a two-bedroom apartment in Ottawa, according to the Canada Mortgage and Housing Corporation, is $1,625, while the minimum wage in Ontario stands at $16.55.
Employees in Ottawa earning the minimum wage and working full time still fall short by $185 to cover their basic bills, Pickthorne emphasized.
The network defines a living wage as the hourly rate required to cover essential expenses, including not only food and rent but also clothing, transportation, and internet. Currently, 33 businesses in Ottawa are certified by the network for paying a living wage.
Matti Pihlainen, owner of Full Cycle, a certified business, highlighted the importance of offering a living wage in staff recruitment, stating that attracting and retaining quality staff became challenging, necessitating a focus on fair compensation.
