The Human Development Council has released a new report looking into the “living wage” in four New Brunswick cities.
According to the report, the living wage is $17.45 in Bathurst, $18.35 in Moncton, $19.55 in Saint John and $20.75 in Fredericton.
“It’s not a poverty line calculation, it’s not a minimum wage calculation,” said Chelsea Driscoll, a social researcher with the council, based in Saint John.
“It’s looking at basically how much money does a family need to earn in an hourly wage sense in order to cover all of their expenses and have a decent quality of life.”
The living wage looks at 10 expense categories in any given community: shelter, child care, food, clothing and footwear, transportation, health care, contingency/emergency, parent education, household expenses, and social inclusion.
It takes into account any government transfers, such as federal and provincial child benefits, and deductions such as income taxes and Employment Insurance premiums.
Driscoll said shelter, child care and food are the top three most expensive budget items in all four cities.
The cost for shelter ranges from $12,320 a year in Bathurst to $17,360 a year in Fredericton.
Child care costs vary from $13,092 in Bathurst to $14,866 in Saint John, while food costs range from $12,147 in Moncton to $12,980 in Bathurst.
“When one of those budget items is slightly higher, for example, because it takes up such a piece of the pie for the family, it really drives the wage up,” said Driscoll.
Driscoll said while the report shows New Brunswick’s current minimum wage of $11.70 is too low, raising it is only part of the overall solution.
With shelter and child care among the most expensive budget items, the report said public services like universal child care and more affordable housing would help shrink the gap.
“It’s directly lowering the total household expenses, which in turn lowers the living wage and brings the living wage closer to what our minimum wages are,” said Driscoll.
“It is a combination of looking at wages in our province but also looking at how can government step in and help lower some of these costs.”