About half of workers in N.S. and N.L. earning less than the living wage: report

HALIFAX — About half of workers in Nova Scotia and Newfoundland and Labrador earn less than what they need to cover basic expenses, a new report says.

The report, released Monday by the Canadian Centre for Policy Alternatives, calls on governments in Nova Scotia, Newfoundland and Labrador and P.E.I. to raise their minimum wage rates, which sit well below the living wage calculated for each province.

A living wage is defined as the hourly rate a household needs to cover basic annual expenses.

Report co-author Christine Saulnier said the three provinces should use the living wage to determine their minimum wages.

According to the report, Nova Scotia has the largest living wage gap of the three provinces, with its minimum wage sitting nearly $12 under what’s needed to meet basic needs.

In a statement to The Canadian Press, a spokesperson for Nova Scotia’s Labour Department said the province has continued to raise the minimum wage.

“Since 2021, the minimum wage has increased by more than 30 per cent, from $12.95 to $17 an hour,” the statement said. “At the same time, we need to consider the impact on small businesses and make sure wage increases are predictable and sustainable.”

The report from the non-partisan research group also estimated that the average income needed to earn a living wage increased this year in the three provinces. It ranged from just over $24.00 an hour on P.E.I. to nearly $29.00 per hour in Nova Scotia. The calculations are based on a reference household with two adults working full-time and two young children.

Saulnier called it a conservative estimate.

“There’s not much in terms of a buffer,” she said in an interview. “There’s no debt in this household .… You’re not making a housing down payment …. You’re really not saving.”

The report did not include any references to the living wage for New Brunswick. That figure typically comes from the Human Development Council, an organization that researches social issues in the province.

Saulnier said the cost of housing, transportation and gas contributed to the increases in living wages across the three provinces.

As well, she said changes to how Statistics Canada measures the official poverty line and estimates the cost of food, clothing and transportation also contributed to the increases.

The report said the sharpest increase in the living wage rate was recorded in Nova Scotia’s northern mainland, mainly because of the rising cost of rent. The cost of rent in Truro, about an hour north of Halifax, rose by 32 per cent in 2026, said Saulnier.

“I assume that housing market is getting some pressure from people who just can’t afford Halifax anymore,” she said.

Melissa Marsman, president of the Nova Scotia Federation of Labour, said the provincial government must do more to address the high cost of living, particularly when it comes to housing.

“One of the ways that the government could help is to invest in non-market housing so that people can afford rent,” she said.

Meanwhile, the living wage in Newfoundland’s Great Northern Peninsula and in Labrador surpassed that of Halifax for the first time, reaching $30.50 per hour. Saulnier said the high cost of food in Labrador means residents need higher wages to make ends meet.

“Their food costs are higher than their housing costs, which is just shocking. And the kinds of programs that exist are just not helping those households be able to afford food,” she said.

In downtown St. John’s, on Newfoundland’s east coast, demand at the Bridges to Hope food bank is up this year by 20 per cent over last year, said executive director Lesley Burgess.

Inadequate incomes and high costs are driving the need, she said.

“Food banks are designed to (provide) a few days of food to get you through an emergency until your next check comes,” she told reporters. “The problem that we’re seeing now is that the cheque coming is not enough to cover even the basics.”

She said governments could help by increasing income support and employment insurance programs.

Saulnier said the report’s findings demonstrate that governments should not only be addressing affordability but also investing more in public services, like social housing.

“I think we need to be investing … in public services because in that case, what we’re doing is saying that people need to pay less out of pocket in the first place, which is the other way to get at this,” she said.

Additionally, she said the threshold for child benefit programs should be adjusted so that more families can gain access to them.

The spokesperson for Nova Scotia’s Labour Department said it is working to bring down costs, referencing its $400 heating assistance rebate, a $100 million investment in school lunch programs and a $1.7 billion investment in a program designed to meet housing demands.

The Canadian Press also sought comment from the labour departments in Newfoundland and P.E.I., but no one was immediately available for comment.

This report by The Canadian Press was first published Nov. 9, 2026.

— With files from Sarah Smellie in St. John’s, N.L.

Tori Fitzpatrick, The Canadian Press