Minimum wage hike bad first policy for new B.C. premier: economist
Posted May 1, 2011 05:38:44 AM.
This article is more than 5 years old.
VANCOUVER – A B.C. economist says Premier Christy Clark made a big mistake in raising the minimum wage, which goes up today.
Niels Veldhuis of the Fraser Institute says Clark’s policy change will kill jobs for young people who need entry positions to get higher-paying work.
The economist with the conservative think tank says every province that’s hiked the minimum wage over the years has experienced more unemployment because fewer workers are hired.
Veldhuis says various studies from the 1980’s to 2006 show unemployment rates among youth aged 15 to 24 go up as minimum wages are raised.
Ian Tostenson, president of the B.C. Restaurant and Food Services Association, says eateries will be forced to raise prices to deal with the minimum wage.
It is rising from $8 an hour to $8.75 effective today, and up to $10.25 within a year.
