Nova Scotia’s ‘low-wage economy’ and the impact it’s having on people

The Nova Scotia public accounts standing committee heard Wednesday that the impact of low wages doesn’t just hurt the people who are struggling to live off them.

The Nova Scotia public accounts standing committee heard Wednesday that the impact of low wages doesn’t just hurt the people who are struggling to live off them.

Christine Saulnier, the director of the Nova Scotia chapter of the Canadian Centre for Policy Alternatives, told the committee that “a low-wage economy’s negative impact runs deep.”

“When we have so many people who face barriers to reaching their full potential and are not paid their worth, their lower productivity has an impact on government revenue, in lower income and consumption taxes,” she said.

“In addition, we know that earning a low wage has a negative impact on workers’ health and leaves them scrambling to cover their basic needs. We all pay for the additional public health expenses and social benefits required to fill gaps.”

She said what’s considered a low wage should be compared against the living wage — what someone needs to earn to support their family and have a decent quality of life — which is estimated to be about $22 per hour in Halifax.

Those earning $22 per hour or less represent about 50 per cent of workers in Nova Scotia, Saulnier said.

She added that the province’s low-wage economy is also marked by a lower quality of jobs.

“The lower the wages, the more likely a job is to be insecure and not come with benefits,” said Saulnier, noting that only 31 per cent of Nova Scotians who earn $25,000 per year or less have access to paid sick leave.