'Living wage' climbs to $16.39; Families feeling increased pressure as costs skyrocket
Times Colonist (Victoria)
May 21, 2008
By: Carla Wilson
The living wage in the capital region has climbed again -- no surprise after watching the rise of fuel, housing and other expenses.
This year's living wage for a family with two children has been calculated at $16.39 per hour, through research done for the local Quality of Life Challenge. Last year, that figure was just under $15.
"Families are feeling increasing pressure with the high cost of housing, the accessibility and cost of child care, increasing costs of food and transportation, and wages that can't keep pace with costs," said Maureen Young, chairwoman of the Quality of Life Challenge.
"We are seeing an increase in the numbers of working poor. And the challenge of attracting and keeping families in this region is impacting all sectors."
Diminished buying power has led some families to move, and schools have been closing, she said.
Employers are also struggling with rising costs and labour shortages, she said. "Employers are having difficulty attracting and retaining staff, and the economic vibrancy of our region is being undermined."
The Quality of Life Challenge is a partnership among several sectors including community agencies, businesses and academic institutions. It is striving to increase sustainable incomes, reduce costs of living and prevent and shrink poverty in the capital region through a community-wide effort, not just by focusing on employers, Young said.
The family would have two children, seven years old and four years old, and parents each working 35 hours a week. The four-year-old would be in daycare.
Under the scenario examined by researcher Tim Richards, using Statistics Canada data, monthly expenses would be $4,616. The biggest chunk, at 28 per cent or $1,299, would go to rent a three-bedroom apartment or townhouse and pay for utilities, insurance and a telephone.
Childcare costs, at 20.5 per cent of monthly income or $947, is the next largest expense, followed by food at 13 per cent or $619. Transportation to cover the cost of owning and running a vehicle, plus a bus pass for a parent, would be 10.8 per cent or $497.
Richards said the living wage rate would allow the family the basic standard of living, adding that it is more than survival-level income.
The wage was calculated in December 2007. "Fuel prices have gone up since then," he said.
Ken Stratford, of Business Victoria, said later, "I think the figure is believable. It is just an expensive city whether you are owning or renting."….
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