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'Living wage' in Simcoe County jumps 8.7% in one year to $20.70

'We have had people who have been housed for decades suddenly find themselves unsheltered and struggling to string together services for their very survival,' says John Howard Society official

Simcoe County residents need to earn a minimum of $20.70 per hour in order to earn a living wage, according to the latest report released by Ontario Living Wage Network (OLWN).

Made up of a group of employers, employees, non-profits, researchers, and proponents of 'decent work standards' for all Ontario workers, the OLWN is striving to change the conversation about what the minimum standard of pay for low-wage workers should be in the province.

The report, which was released Monday, Nov. 14, completed 10 living wage rate calculations covering all regions of Ontario, including Simcoe Country, which now range from $18.05 in London to $23.15 in the Greater Toronto Area (GTA). All rates saw an increase, with the largest jump in Sault Ste. Marie — $16.20 in 2021 to $19.70, representing a 21.6 per cent increase.

In the organization’s Simcoe County region, which also includes Grey-Bruce, Perth and Huron counties, the living wage has increased from $19.05 in 2021 to $20.70 for 2022.

Suzanna McCarthy, who is the executive director at the John Howard Society of Simcoe Muskoka, says while the release of adjusted living wage rates of $20.70 for Simcoe County is well received, she does still have some concerns that inflation, rising food costs and the current rental rates in some geographic areas of the county will outpace the new figure. 

“Over recent months, we have seen a significant increase in people seeking nutrition support and sharing stories of having to prioritize expenses in a way that allows them to remain housed,” she told BarrieToday. “We have had people who have been housed for decades suddenly find themselves unsheltered and struggling to string together services for their very survival.

"So while the new rate is welcomed, I think it is important that we don’t take an overly reductive approach and assume that this adjustment will fully erase the challenges we are facing currently as a community," McCarthy added. 

A living wage is the hourly wage a worker needs to earn to cover their basic expenses and participate in their community and is not the same as minimum wage, which was increased to $15.50 per hour, starting Oct. 1, 2022.

The living wage reflects what people need to earn to cover the actual costs of living in their community — including shelter, food and transportation — and draws on data specific to each community in order to determine the expenses for an average family with two working adults and two children. 

Barrie Food Bank executive director Sharon Palmer said she was pleased to see the increase to the living-wage figure.

“I think it’s a good thing. There are lots of people in our area that are struggling to make ends meet with the current minimum wage and any employers that can find their way to be able to pay more," she said. "The living wage amount is definitely a step in the right direction.”

According to OLWN, this year’s living-wage calculations emerge from a backdrop of record-breaking inflation and Consumer Price Index increases, noting a living wage is an effective tool to combat working poverty by making sure that employees can make ends meet where they live.