The Alberta Federation of Labour (AFL) wants the Alberta government to jack up the minimum wage to $20 an hour immediately. They say it's about fairness for workers hit hard by rising costs. But in the middle of this tough economic squeeze across Canada, that's the last thing Alberta needs. Families here are already shelling out more for basics like groceries and gas. A single person in Alberta faces monthly costs between $2,600 and $3,500 just to get by, with housing prices climbing fast in places like Calgary and Edmonton. Inflation has pushed the consumer price index up nearly 25% since 2018, and everyday folks are feeling it at the pump and the checkout. .EDITORIAL: Alberta teachers turn down a dream deal — and hold families over a barrel.Many gas station attendants and grocery store clerks earn that base rate of $15. Boosting it sharply would force employers to pass on higher labour costs, driving up prices for food and fuel even more. That hits low-income households hardest. The very people the AFL claims to help. Evidence from past hikes shows businesses raise prices to cope, adding to inflationary pressures that erode everyone's buying power. With Saskatchewan now at $15.35 and Alberta trailing, some might think catching up sounds good. Yet rushing this during a time when budgets are stretched thin would backfire. .Here are four solid reasons why Alberta should hold the line on minimum wage increases.First off, it leads to job losses and slower hiring. When governments set a higher floor on wages, employers demand less labour. They cut back on entry-level spots or skip hiring altogether. This hurts young people and those with fewer skills the most. Look at what happened under the Alberta NDP from 2015 to 2018, when the minimum wage jumped 47% to $15. Youth employment dropped sharply, with a seven percent reduction for those aged 15 to 24. That's about 23,000 fewer jobs on average. .OLDCORN: Truth and Reconciliation Day: A national farce masquerading as mourning.Studies across Canada back this up as a 10% hike often slashes teen jobs by three to six percent. In non-urban areas like Lethbridge or rural spots, the hit was even bigger, with employment falling four to seven percent. The AFL points to overall job growth back then, but that ignores how the oil boom masked damage to vulnerable groups.Second, small businesses take a beating, and some shut down. Most small businesses run on slim margins. A sudden wage spike forces them to slash staff, trim hours, jack up prices, or go out of business. .The Canadian Federation of Independent Business warns that mandating $20 nationwide could push over 570,000 small firms to the edge, with 73,000 in Alberta alone at risk. Recent hikes already made 31% of owners cut back on hiring young or unskilled workers, and 25% reduced staff overall.Local entrepreneurs end up carrying the load, not politicians. Communities lose shops and services when that happens..CARPAY: False claims and race-based laws undermine reconciliation.Third, employers turn to reduced hours, automation, or demanding more skills for basic jobs. To offset costs, bosses cut shifts, which means workers take home less despite the higher rate. Or they invest in machines to replace people. The Bank of Canada notes that minimum wage bumps prompt firms to swap labour for capital, speeding up automation in retail and services. One-in-five businesses say recent increases pushed them toward more AI or tech to trim payrolls. Entry-level roles suddenly require experience, shutting out newcomers to the workforce. That shrinks the on-ramps for young people and newcomers just starting out..Finally, it fuels inflation and wipes out gains over time. Businesses pass costs to customers, nudging prices higher. The Bank of Canada estimates such hikes add about 0.1 percentage points to CPI inflation. In Alberta, where costs have skyrocketed, this would compound the problem. Over half of small businesses raised prices after recent wage bumps, feeding the cycle. What looks like a pay boost gets eaten by higher bills, leaving low earners no better off. Fraser Institute research shows minimum wage policies don't even target poverty well as most earners aren't in low-income homes. .BERNARDO: Why police forces must refuse Ottawa’s firearms confiscation scheme.The AFL talks about a "living wage" and indexes it to inflation, but their plan overlooks these real-world fallout. Alberta's economy thrives when businesses can hire freely and keep costs down. Instead of mandates that hurt the vulnerable, let's focus on tax cuts and training to build skills. The UCP has kept the wage steady for seven years, and that's wise amid this crunch. Hiking it now? That would just pile on more pain for Albertans scraping by..Due to a high level of spam content being posted in our comment section below, all comments undergo manual approval by a staff member during regular business hours (Monday - Friday). Your patience is appreciated.
