On Oct. 1, the minimum hourly wage for workers in Ontario, Prince Edward Island, Manitoba, and Saskatchewan saw an increase. In Ontario, the minimum wage rose from $16.55 to $17.20 per hour, giving full-time workers an additional $40 in gross weekly income. According to Statistics Canada, the average full-time worker in Ontario puts in 39.3 hours per week, resulting in a gross weekly income of $675.96, or roughly $35,149 annually.

This wage bump may seem like a step toward financial relief for some workers. However, questions remain about how much of an impact the increase will have in addressing the cost of living in Ontario, especially in urban cities like Toronto, where housing, food, and other essentials continue to rise.

The owner of Express Employment Professionals, Michael Elliott, offered insight into how this increase might affect employee retention and small businesses.

'Employees earning minimum wage are often dissatisfied and always looking for the next job that will pay them a little more. People will move even if it's just $0.50 more per hour,' said Elliott.

Elliott pointed out the gap between the minimum wage and what is known as a 'living wage' in Ontario. According to the Ontario Living Wage Network, the living wage in London, Ont. is $18.85 per hour, so a worker must earn this estimated hourly wage to cover basic living expenses, including rent, transportation, and food. However, the minimum wage still falls short even with the recent increase. This disparity continues to pressure workers and their families, especially in areas with high housing costs.

'You can't survive on minimum wage. Most people cannot make ends meet, even if they're working 40 hours a week. It's not enough money, especially when you factor in significant expenses like food and housing,' Elliott said.

The impact of the wage hike will likely vary across industries. Sectors where workers are typically paid close to minimum wage, such as restaurants, hospitality, and call centres, are expected to feel the increase most acutely. These industries may face higher operational costs, but Elliott believes the wage increase could bring positive changes.

'It does give lower-paid workers some stability. An extra $40 a week might seem small, but when you're making around $500 a week, that's a significant boost,' said Elliott. He pointed out that this could reduce turnover and help businesses retain their employees longer, as workers feel less pressure to leave for higher-paying jobs elsewhere.

Beyond the legal obligations, Elliott stressed that employers should consider their role in helping workers meet their basic needs.

'I think employers have a moral obligation to pay their workers a wage that allows them to exist. The living wage is a great example of the current gap between people's needs and pay. I hope more employers consider this target when planning their business models,' Elliott said.

While the minimum wage hike is a step forward, it remains a stopgap amid rising living costs. For many workers, it will provide only temporary relief, leaving room for further discussions about fair wages and living conditions across the province.