Less than a month ago minimum wage received a 10 cent boost in the province, while some earners may have felt frustrated at the minimal increase, a shift in perspective reveals the benefits behind the increment.

The increase is not without reason, according to Don Morgan, Minister of Labour Relations, it is based on numbers from both the average hourly wage and the consumer price index. Additionally, he said that changes have also been made to the provinces tax brackets, raising the amount a person has to make before they start paying provincial tax, this change resulted in 112,000 residents who were exempt from the tax, allowing them to keep more of their wages.

Some may see the numbers from across the nation, specifically Alberta who increased their minimum wage to $15 per hour, and feel a certain level of unfairness among the wage differences. However, beyond the surface, there are negative effects as a result from the steep increase.

Morgan stated that a study revealed that if minimum wages in all the provinces and territories were increased to $15 per hour, the job market would take a hit with an estimated 60,000 job positions being eliminated due to employers not willing, or able to accommodate the increase.

Business owners will dissolve entry level positions to avoid paying the high minimum wage, which they could replace by technology if applicable, or increase the responsibilities and duties of the middle wage earners with little to no wage increase. Furthermore, if entry level positions are eliminated, it can make it difficult for new earners, or those with no specific skill set, to gain the knowledge needed to work their way up in any given industry.

In a recent report by the government of Saskatchewan, small businesses, which are those with 50 employees or less, account for 99 per cent of all businesses within the province. These businesses employed 31.2 per cent of the workforce, paying out $6.3 billion in wages. Morgan said that if employers are faced with a sudden increase in wages, it is likely the consumer would see an increase in goods and services to offset the spike in wages.

Morgan added that many minimum wage earners, continually improve their skills and knowledge base and increase their earnings as they do so, allowing the position to open up for those looking to do the same.

Of the total workers in Saskatchewan, 10 per cent earn minimum wage.