The Human Development Council has a released a report on the proper living wage for for cities in New Brunswick, showing the wide gap between it and minimum wage.
In New Brunswick, the minimum wage is now $14.75/hour, and has been raised a few times in the recent years but still falls nearly $10 behind the highest living wage.
According to the HDC, the living wage in Fredericton is $24.50. Meanwhile, in Saint John, it sits at $23.35. In Moncton, it is $22.75 and in Bathurst it is $21.65.
“What we do in our calculations, is we take into account 10 different expense categories that go into a reference family of four’s budget,” Heather Atcheson said, who is with the Human Development Council.
“A reference family would be two working parents and two children, aged two and seven.”
One of parents in the reference family is also attending school part-time at community college.
The categories don’t just include the essential items, like shelter, food and water, but also social inclusion, activities and community participation that improve quality of life.
“To allow them to enroll their children in extracurricular activities, attend art classes, go to the movies as a family or go out to a restaurant,” Atcheson said.
She said the impact of not having these things can be significant, even if the essentials are covered.
The report breaks down much of what each category takes out of the budget.
In the case of Fredericton, about 27 per cent of the budget goes toward shelter, while 19 per cent would go toward food. Another 16 per cent goes to child care, and 10 per cent goes to household expenses.
While about seven per cent would go toward social inclusion.
It listed shelter and food as the two most expensive items, with housing coming in just over $1,900 a month.
In Saint John, about 25 per cent of the budget goes toward shelter, while 20 per cent would go toward food. Another 17 per cent goes to child care, and 10 per cent goes to household expenses.
It also listed shelter and food as the two highest expenses, with housing coming more than $1,600 a month.
Atcheson said the gap in a living wage and the province’s minimum wage needs to close significantly in order for New Brunswickers to lift themselves out of poverty.
“Living wages in New Brunswick communities are the highest they have been since we started calculating them in 2018,” the report reads.
“The gap between minimum and living wages tells us that people earning $14.75 per hour will struggle to meet basic needs, let alone pay for additional living expenses.”
It said increasing minimum wage puts more purchasing power in the hands of New Brunswickers, and that government subsidies and grants must increase with inflation to “ensure that everyone, regardless of work status, can live as fully participating members of our communities.”
