Minimum wage falls well short of what’s needed to live in Winnipeg: report

Rising costs of rent, groceries and transportation are making it more difficult to make ends meet in Winnipeg, prompting experts to urge policy makers to step in.

The Canadian Centre for Policy Alternatives issued a new report Thursday saying the living wage required in the Manitoba capital rose by $1.02 over the past year, reaching $19.77. The figure is an estimate of the hourly wage a worker needs to cover basic living expenses.

“Unfortunately, the minimum wage in our province is well below that living wage, so people who are trying to make ends meet — working at minimum wage, full-time — really are struggling to do that,” University of Manitoba economics and labour studies associate professor Jesse Hajer said.

“When people are faced with impossible choices, like choosing between paying the rent or putting food on the table, this creates a lot of stress.”

Manitoba was among five provinces to increase the minimum wage in October, raising it by 20 cents to reach $16.

Hajer said the figure still falls short and contributes to poor physical and mental health for many people, some of whom are forced to live in unsafe environments to get by.

“I think most people would believe that if you’re working full time, you shouldn’t be struggling to pay the rent, cover your food costs and basically have a minimal standard of living.”

Manitoba’s minimum wage is updated annually on Oct. 1 and regulated through the Employment Standards Code. The latest adjustment reflected the province’s 2024 inflation rate of 1.1 per cent, rounded up to the nearest five cents.

The Centre of Policy Alternatives report called on the province to adopt an annual process for adjusting the minimum wage in line with a living wage.

The living wage is based on Statistics Canada’s Market Basket Measure.

It can vary in different regions of the province, and covers basic expenses such as food, shelter, transportation, child care and clothing. It does not account for debt payments, caring for a family member or saving for retirement and emergencies.

According to the centre report, people in Brandon must make $16.22 per hour to get by, while those in Thompson need $17.89. The living wages required in those cities dropped by 6 cents and 1 cent, respectively, since 2024.

The centre attributed the decreases, in part, to lower rent increases in Thompson and Brandon.

Hajer said federal programs such as the GST tax credit, Canada Child Benefit and the Canada Worker benefit also helped living wages remain stable in those cities.

Such programs provide a critical avenue to support families beyond simple wage increases, he said.

Provincial initiatives, including the rent assist program, are also important.

“The problem with the rent assist program is it scales out really fast, so you start earning a bit of income and you lose a bunch of your benefits,” he said.

“I think the provincial government in Manitoba can also look at our programs we have to support lower-income families and see if we can make those a little bit more generous.”

He argued doing so could incentivize Manitobans to remain in the workforce, increasing employee retention and productivity.

Critics of increasing the minimum wage have said doing so would further strain businesses, already under pressure from rising input costs and economic uncertainty.

tyler.searle@freepress.mb.ca