Life on Minimum Wage; A Fact Sheet

The purpose of this exercise is to showcase the impossible choices that many Edmontonians making minimum wage are forced to make daily.


We know many low income households struggle to afford housing.  What are some of the numbers? 

In Alberta:
Tenant and owner households spending 30% or more of its income on shelter costs: 308,485
Percentage of owner households spending 30% or more of its income on shelter costs: 15.1%
Percentage of tenant households spending 30% or more of its income on shelter costs: 36.0%
Percentage of tenant households in subsidized housing: 10.4% (Statistics Canada, 2017)City of Edmonton:
Tenant and owner households spending 30% or more of income on shelter costs: 86,665
Percentage of owner households spending 30% or more of its income on shelter costs: 16.5%
Percentage of tenant households spending 30% or more of its income on shelter costs: 38.1%
Percentage of tenant households in subsidized housing: 10.6% (Statistics Canada, 2017)

What do housing affordability issues look like for those making minimum wage in Edmonton?

This section utilizes the calculation guide created by the Canadian Centre for Policy Alternatives to complement the 2017 living wage calculation for Metro Vancouver. The calculation guide includes a spreadsheet that automatically calculates the living wage amount after local family expenses, deductions, tax credits, and government transfers have been applied. We replaced the living wage with the current minimum wage of $13.60/hour to recalculate yearly budgets of low wage workers and to showcase affordable housing challenges in the City of Edmonton and the choices that many Edmontonians are forced to make because of their low wages and high housing costs (Ivonova and Reano, 2017).

Single Person making $13.60/hour

For a single person living in a $1,000/month one bedroom apartment in the City of Edmonton making $24,752/year:
  • They will have no contingency or emergency fund
  • They will take $150/year off the food budget and may need to go to the food bank
  • They cannot afford cable television, but can have internet and one cellphone
  • They cannot afford health insurance through Alberta Blue Cross
  • They cannot afford to go to night school
  • They must take $500/year off their furniture and supplies budget
  • Even with these cuts, this individual saves only $4 monthly and $50 yearly
  • The single person is eligible for the Ride Transit Program and receives a $35/month bus pass
  • This individual must spend 50% of their income on rent

Single parent with one child making $13.60/hour

For a single parent family with one child living in a $1,106 two bedroom apartment in the City of Edmonton making $24,752/year:
  • A single parent will receive the maximum amounts for the Alberta Child Benefit, the Alberta Family Employment Tax Credit, and the Canada Child Benefit
  • Even with these extra benefits, a single parent making minimum wage cannot afford to go to night school
  • They must take $150/year off their contingency or emergency fund
  • They must cut their furniture and supplies budget by half
  • They must take $200/year off their clothing and footwear budget
  • They must take $100/year off their food budget and may need to go to the food bank
  • They cannot afford television but can have internet with one cellphone
  • This family can save $1 monthly and $7 yearly
  • A family of two is eligible for the Ride Transit Program and receives a $35/month bus pass
  • A single parent family must spend 33.9% of its income on rent

Two parent, two child family, making $13.60/hour

For a two parent family with two children living in a $1,377 three bedroom in the City of Edmonton making $49,504 a year:
  • This family receives a significant amount in child and family benefits
  • This family must take $300/year off its furniture and other supplies budget
  • They must take $200/year off their clothing and footwear budget
  • This family cannot afford to have one parent go to night school
  • They must cut their contingency or emergency fund by half
  • This family can save $2 monthly and $28 yearly
  • This family must spend 24.7% of its income on rent

Conclusion

The purpose of this exercise is to showcase the impossible choices that many Edmontonians making minimum wage are forced to make daily. A single person making minimum wage must choose between receiving an education or having enough food to eat. While a single parent receives the maximum amounts for a variety of federal and provincial child benefits, they are still unable to go to night school and are forced to take $100/year off their food budget, possibly having to use the food bank. A two-parent family with two children also cannot afford to send one parent to night school, and are forced to choose between buying clothing and furniture or paying the rent.
ESPC logo
By Heather Curtis, Research Coordinator,
Edmonton Social Planning Council


Sources:
Ivanova, I., & Reano, P. (2017). Working for a Living Wage 2017. Making Paid Work Meet Basic Family Needs in Metro Vancouver. Calculation Guide. Canadian Centre for Policy Alternatives.

Canada Mortgage and Housing Corporation. (2017). About Affordable Housing in Canada. Retrieved from https://www.cmhc-schl.gc.ca/en/inpr/afhoce/afhoce_021.cfm

Homeless Hub. (2014). What is National Housing Day? Where did it originate? What happens on that day? Retrieved from http://homelesshub.ca/resource/what-national-housing-day-where-did-it-originate-what-happens-day

Statistics Canada. (2017). Canada [Country] and Canada [Country] (table). Census Profile. 2016 Census. Statistics Canada Catalogue no. 98-316-X2016001. Ottawa. Released October 25, 2017. http://www12.statcan.gc.ca/census-recensement/2016/dp-pd/prof/details/page.cfm?Lang=E&Geo1=PR&Code1=01&Geo2=PR&Code2=01&Data=Count&SearchText=Canada&SearchType=Begins&SearchPR=01&B1=Housing&TABID=1

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