A report published on Thursday stated that rising shelter and food costs in Nova Scotia contributed to a significant jump over the past year in what is considered a living wage in the province.

The annual report from the Canadian Centre for Policy Alternatives - Nova Scotia indicated that the living wage rates for 2023 range from a low of $22.85 per hour for Cape Breton residents to a high of $26.50 in Halifax. Last year, the rates were $20 per hour in Cape Breton and $23.50 in Halifax.

Report author Kristyn Solnieh noted that annual increases in five regions of the province averaged 14 percent, the most significant increases since the Centre began calculating the living wage in 2015.

Solnieh stated in an interview that the reason we are seeing these large increases is that these cost of living pressures are not being offset by increases in government transfers (tax credits) or changes on the cost side that might see some sort of decrease.

The living wages reflecting costs as of June this year are as follows: $25.40 per hour in Annapolis Valley; $25.05 for southern Nova Scotia; and $24.30 for the northern part of the mainland. According to the Centre, the living wage reflects the amount a household with two full-time workers must earn to cover all its needs and enjoy a decent quality of life.

Major contributors to this year's increase were shelter costs, which saw average increases of 18 percent across the province, and food costs, which increased by 11 percent in every region.

Solnieh remarked that for the most part, since rent and food make up a significant portion of the budget, any large increases there will see a substantial rise in the living wage.

The report cites statistics from the Canada Mortgage and Housing Corporation, showing that rents in Nova Scotia rose by 8.3 percent in 2022 and by 7 percent in the first half of this year. This follows increases of 4.9 percent in 2021, 3.9 percent in 2020, and 3.7 percent in 2019.

As a result, the report stated, more people are forced to cover housing costs with budget line items such as food.

We have not seen this level of increase over the past thirty years. The report emphasizes the urgent need for a significant increase in investment in affordable housing, prioritizing both the public and non-market sectors.

As part of combating rising living costs, the report also called for a tax system that more fairly reflects wage earners' ability to pay. It also called for adjustments to tax credits at both the provincial and federal levels to benefit more taxpayers.

Solnieh said that people are otherwise working just to pay their bills, adding that unless governments address the income level required to cover the real costs that people face, the income thresholds for those transfers do not help the people they are supposed to help. I'm not talking about one-time cases, I'm talking about making some permanent changes here.

With the minimum wage in the province reaching $15 per hour on October 1, the report calls for the rate to be set at $20.