Executive summary
Minimum wage can be described as the lowest enumeration that employers can pay their workers. It has profound and significant effects on an organization struggling to survive in a competitive economy. The government of Ontario made some changes in the minimum wage recently intending to improve the economy and create some jobs. However, they never considered the realities around the labor market in Ontario.
• Positive effect on reducing poverty- The minimum wage policy in Ontario was looked into by a panel created in 2013, not only for the present but also for the future, and to provide advisory services accordingly (Hurl, 2016). The majority of the individuals live below the threshold and earn more than the minimum wage, indicating that increasing the minimum wage willwould have a significant contribution to reducing poverty.
• Reduced job opportunities for millennials- The changes to the minimum wage create extensive challenges that far outweigh the trivial benefits for employers. The increase, contrary to popular belief, reduces employment opportunities for new entrants in the labor market as employers prefer to hire experienced workers owing to the increase in wages. To effectively fulfill its mandate, the committee went out of its way to consult with the sovereign people of Ontario on what factors they felt should be put into consideration when determining their wages (Hurl, 2016).