Hamilton’s new Living Wage is $21.30/hour.
A new report from the Ontario Living Wage Network (OLWN) shows that a full-time worker in Hamilton needs to earn $21.30 an hour to meet their needs and participate in the community.
A Living Wage is an evidence-based calculation that factors in the cost of housing, nutritious food, childcare, transportation, and the opportunity to participate in community activities. Rates vary somewhat in regions across Ontario as costs of living change. While the minimum wage increased on October 1 of this year to $17.20, there is still no place in the province where someone could make ends meet working full-time at this wage. That means there is a $4.10 gap between Hamilton’s Living Wage and the current minimum wage. The updated living wages in Ontario range from $19.50 in the southwest region, to $26.00 in the GTA. As inflation has calmed in the past year the 2024 living wage rates have increased by an average of 3.4%. For the most part, the increase in this year’s living wage rate is mainly due to rising costs for rent in our province. Inflation of food costs may have calmed but remain high relative to earlier years.
Shelter Costs
The OLWN uses a “conservative” accounting of shelter costs based on data from the Canada Mortgage and Housing Corporation, which reflects the rents people are paying — not asking rents, which tend to be significantly higher. Rapidly increasing rental costs over the past ten years have created a growing gap between the data collected by CMHC and current market rental rates. CMHC’s Average Market Rent in Hamilton has almost doubled since 2010, while inflation has increased by 36% in that time. If rent increased by inflation since 2010, the average rent would be $988/month. Rent increased from $1,242 to $1,491 in just one year. The increase from 2022 to 2023 was 14.1%, nearing $200/month. According to an analysis of CHMC data, this is a larger increase than seen in any other Ontario community.
It is assumed that our reference family of four with a boy and a girl will need a 3-bedroom apartment. Our single parent will need a 2-bedroom apartment, and the single adult will need a one-bedroom apartment.
In Hamilton, shelter costs (which include rent, insurance, and utilities) were calculated at $26,262 for a family of four, $21,527 for a single parent with one child, and $18,347 for a single adult.
Food Costs
Between September 2023 and September 2024, Statistics Canada reported the price of food increased by 2.4% in Canada, which remained above overall inflation (1.6%), following a similar 2.4% increase in August. Food costs are sourced from the most recent Nutritious Food Basket (NFB) data collected by local Public Health Units across the province. The rise in food prices across our province has added significantly to the increase in living wage rates for all communities. Also, as reported by Food Banks Canada, in March 2024, there were over 2 million visits to food banks in Canada — the highest number in history. This year’s food bank usage represents a 90% increase compared to March 2019, and there are signs that the food bank system is reaching its absolute limit.
In Hamilton, food costs were calculated at $11,711 for a family of four, $6,172 for a single parent with one child, and $4,827 for a single adult.
Employers
Unlike the provincially mandated minimum wage, the local Living Wage rate is not legislated, but Living Wage Hamilton, a coalition of community groups including the Social Planning and Research Council of Hamilton, Hamilton and District Labour Council, and the Hamilton Roundtable for Poverty Reduction, has been encouraging local businesses and organizations to certify as Living Wage employers and pay a living wage to their workers.
Members of Living Wage Hamilton will be presenting details on the new Living Wage calculation to Hamilton City Councillors on Monday, November 18, 2024, at General Issues Committee pre-budget hearings.
For more details, check out the Ontario Living Wage Network 2024 calculation report here.
