CREDIT: PHOTODISC / THINKSTOCK
Students often work minimum wage jobs, and with the high cost of post-secondary education every little bit helps.

Effective Oct. 1, the Ontario minimum wage rate was raised to $11.25 per hour.

The 25 cent increase has made Ontario’s minimum wage rate the second highest in the country, beaten out only by the Northwest Territories with a minimum wage rate of $12.50 per hour. New Brunswick has the lowest minimum wage in the country at only $10.30 per hour.

Student minimum wage increased 25 cents as well to $10.55 per hour. According to the 2014 Statistics Canada Labour Force Survey 40.3 per cent of minimum wage earners are under the age of 20, and only 13 per cent of low income earners, or those who make less than $15 per hour, are students in post-secondary education.

Liquor servers’ minimum wage increased to $9.80 per hour following a 35 cent increase.

The international average for minimum wage is $15.

The Ontario provincial government led by Kathleen Wynne tied minimum wage to inflation. Every April the rate of inflation in the province is assessed and a new minimum wage rate is announced, then put into effect the following October. The change was made after considering recommendations made by the Minimum Wage Advisory Panel in a report last year.

“Our government has taken politics out of minimum wage increases while ensuring wages for Ontario workers keep pace with inflation and businesses have time to prepare for payroll changes,” said Minister of Labour Kevin Flynn in a press release. “This puts more money in people’s pockets, gives our businesses predictability and helps build a more prosperous economy, while ensuring a fair society for all.”

Darren Chapman from the Lawrence Kinlin School of Business at Fanshawe said even a small increase to minimum wage is positive.

“While 25 cents doesn’t seem like a lot, it does add up,” Chapman said. “Five dollars to them is a much larger percentage of their income than mine.”

Compared to the rest of Canada and Ontario, London has a higher rate of poverty than other cities. The most recent study looking at poverty in London was released in 2011 by the Social Research and Planning Unit. According to the study, one in seven households in London, or 14 per cent, are unable to afford adequate, suitable and affordable housing.

Chapman said this is because minimum wage is not actually a livable wage, and many families struggle to make ends meet when living on this pay rate. He said $15 per hour better reflects what a livable minimum wage in Canada should be.

Some believe that raising the minimum wage has a negative impact on the economy. Though Chapman does point out some negative factors such as a burden on businesses, increasing minimum wage puts more money into the pockets of consumers and therefore more money into the economy.

“We’re paying those costs anyways, we’re just not paying them directly. We tend to pay it in higher social costs or when people go to the hospital for medical care,” Chapman said.

According to a Statistics Canada survey that looked at the Low Income Cut Off, or the best measure we have to study the poverty line in Canada, in 2013 in order to support a family of four a family must earn a total income of at least $38,185 before taxes. One person working full-time at $11.25 per hour would only make $23,400. Keeping in mind that most minimum wage jobs do not offer workers fulltime hours, this can be extremely problematic.

Chapman said he supports a $15 minimum wage if that’s what it takes for everyone to earn a living wage.

“When they don’t have the money they’re not spending. If they aren’t spending they’re not buying, so producers aren’t producing as much as they could,” Chapman said. “But if you increase the minimum wage a little bit it, it allows them to buy a little bit more.”

The minimum wage is set to increase again in October 2016.