It isn’t good news for a province that wants to retain its young workers and bring back those living and working abroad.
P.E.I. once again led the country with the lowest average weekly earnings in July with $832.40, according to a report released last week by Statistics Canada.
This dwarfed in comparison to our Atlantic Canadian neighbours. Workers in Nova Scotia in July were making an average of $869.24 a week while in New Brunswick the wages were $906.74 and Newfoundland and Labrador $1,028.09.
The P.E.I. numbers had a small glimmer of hope compared to June’s low point of $818. But the trend since January is holding around the $830 mark.
There are a lot of factors behind the numbers, including the number of seasonal and student workers on the Island making minimum wage during the summer months as well as the lack of private sector unions that could negotiate higher wages for their employees.
But the reality is wages on the Island are failing to keep up with the rising cost of living.
In August, the price of certain goods and services measured by the consumer price index rose by three per cent compared to the previous year.
This included increases in the price of food and shelter.
With shelter, it’s a familiar story – rent in Charlottetown is up, the vacancy rate is low and the average price of houses is on the rise.
It also isn’t surprising to hear that there is a labour shortage on the Island. It’s tough to leave – people have a sentimental attachment to the place they call home. But it’s hard to compete with the high wages to be had in Alberta and Saskatchewan for tradespeople and the wages and adventure with relocating to a place like Yellowknife.
The province is doing its part to help out new businesses with labour rebates, and the Island’s minimum wage of $11.55 an hour is the highest in Atlantic Canada.
But the onus is on the business community to come together and start paying wages on par with the rest of Atlantic Canada. The issue of labour shortages isn’t going to fix itself, and given the option of comparable wages, Islanders are more likely to stay home, which grows our population, increases the tax base and creates a stronger province overall. Islanders are going to contribute to an economy, so it might as well be P.E.I.’s economy.
It’s an interesting twist on a familiar problem with respect to out-migration and the efforts to bring Islanders back. The motivation may not be so much the lure of opportunities elsewhere but rather the fact that young Islanders can’t afford to stay here at home.