Tight labour market, rising cost of living pushing up wages on P.E.I.
CBC
At Cows' main shop and production facility in Charlottetown, workers busily press and package T-shirts and scoop ice cream for a tour group that's just arrived.
Since this time one year ago, Cows Inc. CEO Chad Heron said Friday, all his employees have gotten raises averaging about 10 per cent — from the front lines to the front office.
"The inflationary pressures we all felt — rent, gas, all that stuff — was top of mind for people," he said. "So we had to react."
If they hadn't reacted, Heron knew they risked losing employees and not finding enough new hires to get through the busy summer months.
"Last year was by far the hardest we've ever [had] to find people," he said.
"Normally, when we put job ads out, we have a very good reputation, and get lots of applicants. But last year, they weren't there. It was just a very tough year for us, and because of that, obviously you need to be competitive."
That competition for a limited number of workers appears to be fuelling higher wages across Prince Edward Island.
According to the latest numbers from Statistics Canada, average weekly earnings on the Island jumped 5.7 per cent from February last year to this year. That's the highest gain in the country.
In January and February this year, the average weekly wage on P.E.I. rose above $1,000 for the first time ever.
More than that, since July the weekly wage that for many years has been the lowest in the country has started creeping closer to the national average.
P.E.I. wages are typically 15 to 17 per cent lower than the Canadian average. In February, the gap was just 14 per cent.
The numbers don't surprise Kelly Hamilton, who helps manage operations at Island Recruiting in Charlottetown.
Hamilton points out inflation has hit P.E.I. harder than any other province over the last year, and that has forced Island employers to increase their wages more — especially as they've become more reliant on attracting workers from outside the province.
"That dynamic has definitely changed. Our rents are higher. The ability to even buy a home has become difficult for the majority of people coming into the province," said Hamilton.
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