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February 23, 2008

Stagnant Wages

The February 2008 edition of Statistics Canada's Perspectives on Labour and Income contains an article titled "Earnings in the last decade". It analyses average hourly earnings between 1997 and 2007. The results are not what the Campbell government usually spins. The Statistics Canada study found that in constant 2002 dollars the national increase in real wages was 6% over the decade, but it was only 3% in BC. What is more shocking is the study's finding that the average real wage of managers in BC increased by 15% over the decade while the real wages of other workers showed virtually no change.

When the study looked at low wage employment it found that: "Not all provinces have been equally able to reduce the incidence of low-paid employment. Between 1997 and 2007, the proportion of jobs paying less than $10 per hour fell markedly in all provinces except Newfoundland and Labrador, Ontario and British Columbia. In manufacturing, the proportion of low-paid jobs dropped everywhere except Ontario and British Columbia." When the Campbell government is confronted with statistics on the number of British Columbians earning less than $10 per hour, they go into denial and cite anecdotal reports of higher wages paid to unskilled workers. According to Statistic Canada's report, looking at the period January to November 2007, 16.3% of BC jobs paid less than $10 per hour (in 2002 dollars), down only slightly from 17.1% in 1997.

The Campbell government usually responds to statistics on poverty by saying that they are out of date, because most such statistics are based on income tax returns; taxes aren't filed until the end of April for the previous calendar year, and it then takes many more months before statistics are made available. By contrast, the Labour Force Survey data used by Statistics Canada for its Earnings Report are current. This data reveals tens of thousands of British Columbians haven't enjoyed the benefits of BC's economic boom.

 
 

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