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- calendar_today November 10, 2026
Report Highlights Living Wage Gap in Atlantic Canada
A new report released by the Canadian Centre for Policy Alternatives indicates that about half of workers in Nova Scotia and Newfoundland and Labrador earn less than the living wage needed to meet basic annual expenses. The report urges provincial governments in Nova Scotia, Newfoundland and Labrador, and Prince Edward Island to raise minimum wage rates, which remain significantly below the living wage calculated for each region.
Defining the Living Wage and the Wage Gap
The report defines a living wage as the hourly rate a household requires to cover essential yearly costs such as housing, food, and transportation. In Nova Scotia, the report identifies the largest living wage gap among the evaluated provinces, with the current minimum wage nearly $12 less per hour than what is needed to cover basic needs.
Christine Saulnier, co-author of the report, advocated for governments to use the living wage as a benchmark when setting minimum wage policies. She characterized the living wage calculation as a conservative estimate, reflecting no debt, no savings for major expenses, and only essential spending.
Rising Costs Drive Living Wage Increases
According to the research, living wage requirements have risen across Nova Scotia, Newfoundland and Labrador, and Prince Edward Island. The calculation is based on a reference household of two adults working full-time with two young children. This year, the necessary income to achieve a living wage ranged from just over $24 per hour in Prince Edward Island to nearly $29 per hour in Nova Scotia.
Saulnier cited increased costs of housing, transportation, and gas as primary factors driving up the living wage. Changes by Statistics Canada in measuring the cost of food, clothing, transportation, and poverty also contributed to the increase.
Regional Disparities and Housing Pressures
Nova Scotia's northern mainland saw the sharpest increase in living wage, largely due to a 32 percent rise in rent in Truro. Saulnier suggested this may result from displaced Halifax residents seeking more affordable options. Meanwhile, for the first time, the living wage in Newfoundland's Northern Peninsula and Labrador surpassed that of Halifax, reaching $30.50 per hour. Saulnier attributed this primarily to high food costs, surpassing even housing expenses in Labrador, and noted that current programs are insufficient to address these needs.
Melissa Marsman, president of the Nova Scotia Federation of Labour, emphasized the necessity for government intervention in housing, recommending investment in non-market housing to improve affordability. She also highlighted that even the current $17 minimum wage leaves many workers struggling to cover basic expenses.
Inadequate Incomes and Food Security Concerns
Lesley Burgess, executive director of Bridges to Hope food bank in St. John's, reported a 20 percent increase in demand over the previous year, attributing this rise to inadequate incomes and high living costs. Burgess explained that many individuals now routinely rely on food banks, rather than using them only in emergencies, due to insufficient funds to meet basic needs. She called for expanded income support and enhanced employment insurance programs.
Government Responses and Recommendations
A spokesperson for Nova Scotia's Labour Department stated that the province has raised the minimum wage by more than 30 percent since 2021, from $12.95 to $17 an hour. However, the spokesperson also stressed the need for predictable and sustainable wage increases that consider small business impacts. The provincial government has taken measures to address costs, including a $400 heating rebate, $100 million for school lunch programs, and a $1.7 billion investment to meet housing demands.
The report recommends that governments bolster public services like social housing and adjust child benefit program thresholds to increase access for more families. Labour departments in Newfoundland and Prince Edward Island were contacted for comment but did not respond in time for publication.
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Source: cbc.ca.
