Living wage reports show half of Atlantic workers earn less than needed

HALIFAX · New reports show nearly half of workers in Nova Scotia and Newfoundland and Labrador earn below the hourly wage required to cover basic household expenses. The Canadian Centre for Policy Alternatives released its findings Monday, urging governments in Nova Scotia, Newfoundland and Labrador and P.E.I. to raise minimum wages. Nova Scotia's minimum wage of $17 an hour falls nearly $12 short of the living wage calculated in the report. The living wage is defined as the hourly pay needed for a household to meet its essential annual costs.

Christine Saulnier, the think tank's Atlantic director, said the three provinces should use the living wage to set their minimum pay standards. "If you are not earning this conservative estimate of what it takes, then really, truly, you're struggling," Saulnier said. The report models a family with two working adults and two children, finding no room for savings or debt. It estimates the required hourly rate rose this year, reaching nearly $29 in Nova Scotia and just over $24 in P.E.I.

A spokesperson for Nova Scotia's Labour Department said the province has increased its minimum wage by more than 30 per cent since 2021. The statement noted the need to consider impacts on small businesses and ensure wage hikes are predictable. The department also pointed to affordability measures like a heating rebate and investments in housing and school lunches. The report identified housing and transportation costs as key drivers behind the rising living wage figures.

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The most dramatic increase occurred in northern Nova Scotia, where rent prices pushed the living wage up by nearly 10 per cent. Saulnier said rent in Truro jumped 32 per cent in 2026, likely due to pressure from people priced out of Halifax. Halifax itself has the highest rate in the province at $30 an hour. Meanwhile, the required wage in Labrador and Newfoundland's Great Northern Peninsula hit $30.50, surpassing Halifax for the first time due to high food costs.

"Their food costs are higher than their housing costs, which is just shocking," Saulnier said. In St. John's, demand at the Bridges to Hope food bank rose 20 per cent this year, according to executive director Lesley Burgess. Burgess said inadequate incomes mean paycheques no longer cover basics, even with emergency food aid. She called for stronger income support and employment insurance programs from governments.

Melissa Marsman, president of the Nova Scotia Federation of Labour, said the provincial government must do more, particularly on housing. "One of the ways that the government could help is to invest in non-market housing so that people can afford rent," Marsman said. Saulnier argued for greater investment in public services like social housing to reduce out-of-pocket costs for families. She also recommended adjusting thresholds for child benefit programs to reach more households.

A separate report from the Human Development Council set New Brunswick's living wage at $24.84 an hour, leaving a gap of nearly $9 with the provincial minimum wage. The council found 40 per cent of the province's workers earned less than that amount in 2025. Data analyst Liam Fisher said most of those workers were not students, were over 20 and worked full time, often for larger firms. Fisher noted the calculation covers only bare essentials, excluding savings, disability costs or children's education funds.

Julia Woodhall-Melnik, a University of New Brunswick social work professor, called the living wage a superior poverty measure. "It's the bare minimum that somebody can make in order to keep themselves afloat," said Woodhall-Melnik, who holds the Canada Research Chair in Resilient Communities. She said single-income households are especially vulnerable and that people should not be paid less than it costs to live. The report's authors and labour leaders urge collaboration between government, employers and workers to address the wage gap and support small businesses.

With files from The Canadian Press, Global News and CityNews