THUNDER BAY — Inflation is making it even harder for low-income people to earn a living wage in Northern Ontario.
The Ontario Living Wage Network calculates that a living wage in Thunder Bay and elsewhere in the North has climbed to $19.70 per hour, a more than 20 per cent higher than last year for the city.
The previous living wage estimate for Thunder Bay was $16.30 per hour.
The Ontario Living Wage Network is now reporting the living wage for 10 regions across Ontario — one of which is Northern Ontario — rather than using a mix of municipal, county and regional boundaries to define each distinct living wage area.
Its calculations reflect the actual cost of living in each region.
"I'm not surprised at all" by the increase from last year, says Bonnie Krysowaty, coordinator of the Thunder Bay Poverty Reduction Strategy for the Lakehead Social Planning Council.
In an interview Monday, she explained that in previous years the annual calculation has been based on a four-person family including two working adults.
"The big question from people has always been what about the single person, what about two people with no children, or two people living on a pension? So there were lots of nuances that weren't looked at," she said. "This is an aggregated average. It's a much more realistic representation of what it actually costs people to live."
Krysowaty said it's unrealistic to expect people to manage with anything less.
Referring to last year's calculation of $16.30 per hour, she said "I think it's obvious to most people in Thunder Bay that it's not possible to meet all the social determinants of life, and stay healthy, with that kind of wage."
Across Ontario, the the lowest calculated required living wage to be $18.05/hr in the London area, while the highest is $23.15 in the Toronto area.
The calculations are based on the cost of food, shelter, clothing, transportation, adult education, medical expenses, life insurance, cell phone and internet costs, child care expenses and other costs.
They also include modest amounts to allow for annual vacations.
Any applicable government taxes, transfers and benefits are factored in as well.
Ontario's minimum wage is now $15.50 an hour.
Krysowaty said publicizing an actual living wage helps draw attention to the inadequacy of the minimum wage.
"People are having to choose whether to eat or pay a cell bill. Those are the messages that I'm personally receiving from people in Thunder Bay that are earning the minimum wage," she said. "There are people earning the minimum wage who are homeless, and working 40 hours a week. So the minimum wage is not enough to live on."
The Ontario Living Wage Network encourages employers to use its calculations in setting salaries.
It says employers who do this report less staff turnover, better recruitment and higher productivity.
The current report is available online.
