The living wage in the Cowichan region continues to rise into 2023, soaring to $25.20 per hour according to this year’s Living Wage Update.
That’s a 7.1 per cent increase over last year, which was determined to be $23.53 an hour in the Cowichan area, and a 21 per cent increase over the 2021 rate of $19.13.
The living wage is the hourly wage that two parents working full-time need to earn to support a family of four.
The living wage is considered enough for families of that size to cover necessities, support the healthy development of their children, escape severe financial stress and participate in the social, civic and cultural lives of their communities.
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The annual living wage is determined by the Canadian Centre for Policy Alternatives, the Office of Living Wage for Families BC, and locally by Social Planning Cowichan.
Cowichan’s living wage ranks among the highest in the province, only slightly behind larger urban centres like Victoria and Vancouver.
Social Planning Cowichan’s Ryan Watson said that while there are some areas, like rental housing, where the cost of living may be more affordable in the Cowichan region, the area’s more rural, dispersed geography and mix of smaller communities nearly always requires that families maintain two vehicles for daily commuting, adding a significant financial burden compared to families in larger urban areas with access to more efficient public transportation.
The 2023 Living Wage report shows that the Cowichan living wage family has to spend approximately $3,780 more than last year for the same goods and services.
While parents with young children in licensed child care have benefited from large fee reductions this year, the savings are entirely consumed by soaring prices in other areas.
Housing costs alone demand an added $312.73 per month from their budget; a spike of 17.6 per cent.
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Food, the second most expensive item in the living wage family budget, is an extra $74.36 per month, an increase of 6.1 per cent.
“Although inflation has dropped from last year’s historic highs, the cost of living across B.C. continues to increase rapidly,” Watson said.
Many employers in the province have stepped up to pay both direct and contract employees wages sufficient to support families, with nearly 400 certified Living Wage Employers across the province, with eight registered employers in the Cowichan region.
Watson said many B.C. workers earn less than the living wage and face impossible choices, like buying groceries or heating the house, or keeping up with the bills or paying the rent on time.
“In the last two years, the gap between the minimum wage and living wages in B.C. has grown significantly,” he said.
“In Cowichan, this gap is now close to $8.45 per hour. B.C.’s low-wage workers need a raise but the labour market alone can’t resolve all economic insecurities. Governments can and should do more to address the cost of living crisis that people are facing across the province.”
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Watson stressed that the living wage only allows for a modest lifestyle without extras many take for granted.
“A living wage allows workers to meet their basic needs and have the time and money for an active and fulfilling family and personal life,” he said.
“However, it is important to note that this calculation represents a ‘bare minimum’ standard of living, and fails to include additional expenses such as debt repayment, future savings for a house, retirement or children’s education, anything beyond minimal entertainment and recreation, among other unexpected costs that might arise throughout the year.”
Social Planning Cowichan is encouraging all businesses and organizations in the Cowichan region to become certified Living Wage Employers.
To learn more or register your business, visit Living Wage for Families BC.
For more information, go to www.socialplanningcowichan.com, or contact infospcowichan@gmail.com.