The cost to live in Canmore continues to skyrocket, according to a new report on the living wage for the community.
The report stated a household with two adults and two children would need to have each adult making $37.40 an hour in a 35-hour work week to earn a living wage.
The latest figures are an increase from the 2020 rate, which came in at $30.97.
“For a community to be sustainable and welcome individuals from diverse economic backgrounds, we need to have a community where, on average, an individual can earn and grow and thrive in their community,” said Lisa Brown, the Town of Canmore’s manager of community social development, in a presentation to the committee of the whole Tuesday (Dec. 21).
“If an individual cannot earn enough to have a decent standard of living, there is the risk of individuals and families moving to other more affordable communities, which may further decrease our economic diversity and impact our workforce sustainability and our community feel.”
Brown emphasized the living wage is an indicator and not a direction for the necessary pay needed to live in the community.
Canmore, however, scored significantly higher compared to other Alberta municipalities.
In nearby Cochrane, the living wage was calculated at $22.60, while Calgary was $18.60 and a more remote place such as Fort McMurray was $27.35.
The average wage in Alberta is about $21 an hour and the average wage for workers in the Bow Valley is $19.11, according to the Job Resource Centre.
A staff report to the commitee stated the average household expenses for a family of four is about $113,000, while employment income is roughly $136,000. There are an additional $6,000 in government transfers, but almost $29,000 in taxes are collected.
For a single adult living in Canmore, the living wage was calculated at $23.70 an hour.
The report methodology had a single person who rents their home, doesn’t have dependents and is in the early stages of their career.
“All levels of government have an important role to play in community affordability,” Brown said.
“Employers also have a role in community affordability. The living wage program is not meant to direct wages, but instead meant to be a tool to help employers maintain a sustainable workforce.”
The highest expense is shelter followed by taxes, childcare and food.
The report highlighted several significant increases in food such as wheat, vegetables and meat, as well as shelter and rent or homeownership.
The most notable showing of the high cost to live in Canmore had local housing 241 per cent more expensive than the Alberta baseline of Edmonton.
Local agencies such as the Bow Valley Food Alliance, food rescues, Canmore Community Housing, Roam transit and the new childcare agreement between the province and federal governments can help to reduce affordability concerns if they’re accessed by residents.
Depending on the level of programming used or that a resident is eligible for, it could add a few hundred dollars to several thousand dollars in savings each year.
“They offer huge leverage for increasing affordability. The vital homes program, food and friends, Bow Valley Food Alliance,” Brown said. “They can only run with the community and government support. There is a minimum wage everybody needs to earn. Now it’s the ‘what is that for Canmore?’”
The wages were calculated by the Alberta Living Wage Network (ALWN) and use a methodology a person needs to cover modest living expenses after taxes and government benefits are accounted for.
The Town of Canmore first compiled a living wage in 2015, which was then $23.40 an hour per adult. In 2017, after the launch of Roam transit, the living wage fell to $22.65 an hour.
But in 2020, the living wage had grown to $30.97 an hour per adult before escalating almost an extra $7 an hour in about a year.
The methodology for the wage comes from using population statistics and community expenses. The ALWN has a standard methodology across Alberta and doesn’t calculate local programs such as food recovery.
The living wage isn’t specific to an individual or circumstance, but is used to understand the affordability of a community and the impact programs can have.
The expenses come from Statistics Canada and Alberta Health Services' reports on food, shelter, clothing, transportation, healthcare, household items and childcare. The reports come from between 2019-21 and are adjusted for inflation.
Coun. Joanna McCallum called it an “interesting” and “daunting” presentation as the wage continues to go up. She also noted as people make more, they may lose certain subsidies that can help.
“As municipalities, we have the least amount of effect on that number. For example, a federal income tax. If someone’s making $18 an hour and they move up to $19 an hour. … They would lose their childcare subsidy by making $1 more per hour. That makes me sad.”
McCallum also highlighted how the province is considering selling affordable housing assets as part of its housing strategy, which could significantly impact locals.
With the province yielding significant decision-making power on affordability issues, Coun. Jeff Mah urged people to read up on what the policies of each of the parties are for the upcoming 2023 provincial election.
The report noted how Canmore has the highest living wage in Alberta and emphasized the need of all levels of government, businesses and the community to provide affordable options.
However, if programs available are accessed and regularly used, the living wage would decrease from $37.40 an hour to $26.17 an hour.
The 2021 Canmore citizen perspective survey had 14 per cent of respondents state the high cost of living had led to a deteriorated quality of life.
“It’s an indicator of affordability. … I think it really is a shared responsibility and it’s something we all have in our best interests to pursue,” Mayor Sean Krausert said. “Individuals have a responsibility to look for those programs that are available that could meet their circumstances, recognizing they won’t all be eligible.
“For businesses, we’ve seen staff shortages and the difficulty in retaining staff. Obviously, it’s in the best interests of the businesses to explore creative ways to gain benefits for their employees without necessarily paying the equivalent of a salary increase through these other programs. As a Town, we have affordability programs to help people and we need to be putting more housing options out there, advocating to the provincial government to get a housing program and not to gut our social housing. We also need to continue to expand the reach and frequency of public transit. When these programs become available to everyone, then they can be properly taken into account in our living wage calculations.”
