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Alberta Minimum Wage Profile 2006 March 2007 April - Ab&ta August 2007 Employment, Immigration andIndustry Alberta Minimum Wage Profile April 2006 - March 2007 Introduction TheAlbertaMinimum WageProfilepresents current informationonminimumwage earners inAlbertaandtheotherprovinces. Statistics includethepercentage ofemployees earningminimumwage in eachprovinceplusthe characteristics ofAlbertaminimum wage earners. TheAlbertaMinimum WageProfileuses ratesthatare effective fortwotimeperiods: April 1, 2006 toMarch 31, 2007 andApril 1, 2005 to March 31, 2006. Interprovincial Analysis Alberta’sproportionofminimumwage earnerswas lowerfromtheApril 2005 -March 2006 referenceperiodtothe April2006-March2007 referenceperiod. The Canadian percentage increasedas provinces raisedtheirminimumwages. Figure 1: Percentage ofEmployees Earning Minimum Wage April2006-March2007 April2005-March2006 Alberta 1.3% 1.9% Canada 4.5% 4.4% Accordingto figure 2, eightprovinces’ minimumwages increased fromMarch 1, 2006 to March 1,2007. Figure 2: Provinces with Increases in Minimum Wage Manitoba $7.60 $7.25 NewBrunswick $6.70 $6.40 Newfoundland and Labrador $7.00 $6.50 Nova Scotia $7.15 $6.80 Ontario $8.00 $7.75 Prince Edward Island $7.15 $6.80 Quebec $7.75 $7.60 Saskatchewan $7.95 $7.55 In figure 3, six ofthe eightprovinces with increasesto theirminimumwage also had an increase in theirpercentageofminimum wage earners. The exceptions were Manitoba andQuebec which experiencedadecrease of0.5 percentagepoints and 0.6 percentage pointsrespectively. Newfoundland and Labradorhadthe largestpercentage increase, at 1.9percentagepoints. Figure 3: Percentage ofEmployees EarningMinimum Wage by Province Percentage ofEmployees April 2006 -March Earning Minimum Wage 2007 April 2005 - March2006 Manitoba 4.5% 5.0% New Brunswick 4.2% 3.0% Newfoundland and Labrador 8.8% 6.9% Nova Scotia 6.2% 5.3% Ontario 5.4% 4.5% Prince Edward Island 5.3% 4.6% Quebec 4.0% 4.6% Saskatchewan 5.3% 4.4% MostofAlberta's employees earnedmorethanminimumwage, as shown in figure4. Theprovince had 17,767 minimumwage earners, whichrepresentedthe lowest percentage ofminimumwage earners among Canadianprovinces, at 1.3%. This analysis wasbasedon 1,397,460 Alberta employees oforganizations. This total excludes 500,083 individuals whowere self-employed, unpaid familyworkers orworkedmorethan44 hoursperweek. Figure4: Percentage ofEmployees EarningMinimum Wage by Province Province AlbertaMinimumWageProfile,April2006-March2007 2 . Several provinces have scheduled increases to theirminimumwage rates inthe coming years. Here is a summary ofupcomingminimum wage increases as ofJuly 13, 2007 (see Appendix B fordetails). Figure 5: Provinces with UpcomingMinimum Wage Increases r~' MinimumHoulyWage NextMinimum RateasofMarch 1,2007 HourlyWageRage EffectiveDate Alberta $7.00 $8.00 September 1, 2007 Manitoba $7.60 $8.00 April 1, 2007 NewBrunswick $6.70 $7.25 July1,2007 NovaScotia $7.15 $7.60 May1, 2007 $8.75 March 31, 2008 Ontario $8.00 $9.50 March 31, 2009 $10.25 March 31, 2010 PrinceEdward Island $7.15 $7.50 April 1,2007 Quebec $7.75 $8.00 May1, 2007 Yukon $8.25 $8.37 April 1, 2007 Detailed information aboutminimumwage rates canbe foundatthewebsite: http://srvl16.services.gc.ca/wid-dimt/mwa/index.aspx?report-reportl Alberta Analysis InAlberta, the minimumwage earnerprofilewas as follows fromApril 2006 to March 2007. aged 15-19 years part-timework private sectorwork permanent employment non-unionemployee less thanoneyearofjob experience workinthe Accommodation andFood Services industry workin a Sales and service occupationsn.e.c.1 some high school education female 1Notelsewhereclassified AlbertaMinimumWageProfile,April2006-March2007 3 Year-over-year,therewere lessminimumwage earners in Alberta. Those aged 15-19 years accounted for43.3% ofthetotal numberofminimumwage earners in Alberta, whichwas 5.9percentagepoints lowerthanthe April 2005 -March2006 period. Figure 6: Proportion ofAlberta Minimum Wage Earners by Age (Years) April2006-March 2007 April2005-March2006 15-19 43.3% 49.2% 20-24 16.9% 13.4% 25-29 9.1% 7.2% 30-34 6.0% 4.6% 35-39 3.4% 4.7% 40-44 5.1% 6.7% 45-49 5.5% 4.5% 50-54 4.5% 4.5% 55+ 6.1% 5.2% llotai 100% 100% i Thereweremore full-timeworkers andlesspart-time employees earningminimum wage. Butpart-timeworkers still accounted forthegreaterproportionofminimum wage earners. Figure 7: Proportion ofAlberta MinimumWage Earners by Type ofWork April2006-March2007 April2005-March2006 Full-Time 40.7% 37.1% Part-Time 59.3% 62.9% Total 100% 100% Thepercentageofminimumwage earners intheprivate sectorincreasedto 90.6%while therewere lesspublic sectoremployees earningminimumwage. Figure 8: Proportion ofAlberta Minimum Wage Earners byEmployee Type April2006-March2007 April2005-March2006 PrivateSectorEmployee 90.6% 88.7% PublicSectorEmployee 9.4% 11.3% Total 100% 100% Thepercentageofpermanentemployeeswhoearnedminimumwageincreasedslightly by 1.2 percentagepoints. Figure9: Proportion ofAlberta Minimum Wage Earners byNature ofJob Themajority ofAlbertaminimumwage earnerswerenon-unionemployees, at92.5%. Figure 10: Proportion ofAlberta Minimum Wage Earners byUnion Status April2006 -March2007 April2005-March2006 Non-UnionEmployee 92.5% 95.0% UnionMember 5.8% 4.0% UnionCoverage 1.7% 1.1% Total 100% 100% AlbertaMinimumWageProfile,April2006-March2007 4 Ofall minimumwage earners, overhalfhad less thanoneyearofjob experience. However, thispercentage decreasedby 6.1 percentagepoints, reflectingthe competitive labourmarket forworkers. Figure 11: Proportion ofAlberta Minimum Wage Earners byJob Experience April2006-March 2007 April2005-March2006 LessthanOneYear 53.9% 59.9% OnetoFiveYears 35.0% 28.5% MorethanFiveYears 11.1% 11.5% Total 100% 100% The largestpercentage ofminimumwage earnerswere inthe following industries: Accommodation andFood Services, 25.5%; RetailTrade, 24.7%; andInformation, Culture and Recreation, 8.2%. Figure 12: Proportion ofAlberta Minimum Wage Earners by Industry April2006-March2007 April2005-March2006 AccommodationandFoodServices 25.5% 28.8% RetailTrade 24.7% 24.1% OtherServices(exceptPublicAdministration) 8.8% 5.6% Information,CultureandRecreation 8.2% 8.5% EducationalServices 6.6% 6.9% AllOtherIndustries 26.2% 26.2% Total 100% 100% The largestpercentage ofminimumwage earners were employed in the followingthree occupational groups: Sales and service occupations n.e.c., 28.1%; Retail salespersons and sales clerks 18.7%; andChefs andcooks, 16.2%. Teachers andprofessors replaced Financial, secretarial and administrative occupations as one ofthetop five occupational groups. Figure 13: Proportion ofAlberta Minimum Wage Earners by Occupation April2006-March2007 April2005-March2006 Salesandserviceoccupationsn.e.c. 28.1% 31.2% Retailsalespersonsandsalesclerks 18.7% 21.1% Chefsandcooks 16.2% 12.4% Clericaloccupations 8.9% 7.6% Teachersandprofessors 5.1% 2.8% Allotheroccupations 23.0% 24.8% [Total 100% 100% Ofall Albertaminimumwage earners, 45.3% had some high school education. High schoolgraduates madeup thenext largestportion at21.1%. Figure 14: Proportion ofAlberta Minimum Wage EarnersbyHighestEducational Attainment April2006-March2007 April2005-March2006 0-8Years(Elementary) 1.9% 5.0% SomeHighSchool 45.3% 47.0% HighSchoolGraduate 21.1% 18.0% SomePostSecondary 7.5% 7.6% PostSecondaryCertificateorDiploma 13.7% 12.8% UniversityDegree 10.4% 9.5% Total 100% 100% AlbertaMinimumWageProfile,April2006-March2007 5 Females made up 66.0% ofthe minimumwage earners inAlberta, an increase of3.3 percentagepoints from the lastreferenceperiod. Figure 15: Proportion ofAlberta Minimum Wage Earners by Gender April2006-June2007 July2005-June2006 Female 66.0% 62.7% Male 34.0% 37.3% Total 100% 100% Forinformation onthemethodology anddefinitions, see Appendix A. Appendices B and C providethe minimumwages before andaftertax foreachprovince. AlbertaMinimumWageProfile,April2006-March2007 6 APPENDIX A Methodology The data forthisprofile is gathered fromthe LabourForce Survey (LFS) conductedby Statistics Canada. Eachmonth, the DataDevelopment andEvaluationbranch ofAlberta Employment, ImmigrationandIndustryreceives LFS files from Statistics Canada. This includes amicrodata file, which contains the complete file ofall LFS responses. Theminimumwage analysis isperformedonthemicrodatausingthe statistical software package, Statistical Analysis System, or SAS. The Canadianterritories arenotcaptured inthe LFS sothey are excluded fromthis analysis. Twelve-month averages areusedto ensuretheresults arenot affectedby seasonality. Themicrodata files foreach ofthe twelvemonths examinedare combined into one large datasetand annualaverages are thencalculated. Forexample, inthisprofile, theresults are anaverage ofthe April 2006 toMay2007 figures. Minimumwagerates oftenchange; thereforethe minimum wage profilewill differfrom onereportto the next. Occupational and industrial classifications werebasedonthe following. National Occupational Classification- Statistics 2001 http://www.statcan.ca/eng1ish/Subiccts/Standard/soc/2001/nocsO1-menu.htm NorthAmerican Industry Classification System2007 http://www.statcan.ca/emilish/Subiects/Standard/naics/2007/naics07-menu.htm Alldatawas taken from Statistics Canada, LabourForce Survey microdata files, withthe following exceptions: Appendix B: Fact Sheet: MinimumHourlyWage Rates Source: Human Resources and Social Development Canada Appendix C: MinimumWage Comparisons Source: Alberta Finance AlbertaMinimumWageProfile,April2006-March2007 7 APPENDIX A (Continued) Definitions These definitions are from Statistics Canada, exceptfor“Employees” and the occupational and industrial groups. Employees Inthis analysis, people whowere eitherself-employed orlistedas having anhourly wage rate of$0.00 wereremoved from theoverall employment figureto determine the number ofemployees. Employees workinggreaterthan44 hours werealso excluded fromthe analysis. Please notethatthenumberofemployees in organizations is different fromthe employment figure forAlberta. Full-TimeEmployees Peoplewhousuallywork30hours ormoreperweekattheirmain oronlyjob. Minimum WageEarner Peoplewho earnedminimumwage orless. Some employees fall outside the scope ofthe Employment Standards Code’sminimumwageprovisions andmay earn less than minimumwage. See Section 8 ofthe Employment Standards Regulationand section 2(3)(g) ofthe Code formore information. OccupationsinSocialScience GovernmentServiceandReligion y Occupations inthismajorgroup include Recreation, Sports and Fitness Program Supervisors and Early ChildhoodEducators andAssistants. OtherServices (exceptPublicAdministration)Industry Consists ofestablishments engaged inrepairing ormaintainingmotorvehicles, machinery, equipmentandotherproducts; providingpersonal services; organizing/promotingreligious activities; andpromoting/advocating causes invarious organizations andassociations. Part-TimeEmployees Peoplewhousuallyworkless than 30 hoursperweekattheirmainoronlyjob. PermanentJob Apermanentjob is one that is expectedto lastas long as the employeewants it, given thatbusiness conditionspermit. There is nopre-determinedterminationdate. Sales andServiceOccupations n.e.c. Occupations in thismajorgroup areprimarilyconcernedwithproviding services not elsewhere classifiedin otherSales and Service occupational groups, non-storeretail sales notelsewhere classifiedandproviding servicesrelatedto sales. Examples ofoccupations inthis category include Hairstylists, Cleaners and Butchers. AlbertaMinimumWageProfile,April2006-March2007 8 APPENDIX A (Continued) Definitions (Continued) TemporaryJob Atemporaryjob has apredeterminedenddate, orwill endas soonas a specifiedproject is completed, including seasonaljobs; temporary, termorcontractjobs, includingwork donethrough atemporaryhelp agency; casualjobs; andothertemporarywork. Wage Hourlywage/salarybeforetaxes andotherdeductions, includingtips, commissions and bonuses. AlbertaMinimumWageProfile,April2006-March2007 9