Thank you, Mr. Speaker. On September 1, 2021, the minimum wage in the Northwest Territories will increase from $13.46 per hour to $15.20 per hour, making it the second highest minimum wage in Canada behind Nunavut. Since the last increase in 2018, the cost of living and the average hourly wage in the NWT have risen. This increase ensures that the minimum wage does not fall behind, brings our minimum- to average-wage ratio more in line with the rest of Canada, and makes us more competitive with our neighbouring jurisdictions.
Mr. Speaker, the Government of the Northwest Territories is very aware of the ongoing impacts that the COVID-19 pandemic has had on employees and businesses. That is why this government has provided a number of supports since the onset of the pandemic, including the NWT Wage Top-Up program, which has been extended until August 31, 2021; the extension of the Business Development and Investment Corporation working capital loans and deferred loan payments; financial supports for the arts and agriculture sectors; and the Support for Entrepreneurs and Economic Development program, which was adapted to the realities of the pandemic. We also understand the importance of providing employers with sufficient time to plan for and implement a new minimum wage, which is why we are making this announcement now and will continue to advertise this change until it comes into effect on September 1st.
The Department of Education, Culture and Employment also recently announced new Labour Market Recovery Program funding, which will provide critical support to businesses looking to re-hire workers, prevent further job losses, return to or transition operations, or develop training and capacity. This recovery funding is available to employers, organizations, and community partners by contacting regional education, culture and employment service centres.
The decision to increase the minimum wage to $15.20 per hour was informed by the recommendations of the Minimum Wage Committee. To ensure that the views of employees and employers are reflected in decisions about the minimum wage, a Minimum Wage Committee is struck every two years and includes representatives from industry, labour, and non-governmental organizations. Committee members work collaboratively to identify options for minimum wage rates that are considered fair for both employees and employers. In developing their recommendations, the committee undertook extensive research on the social and economic conditions of the Northwest Territories, minimum and average hourly wages in other provinces and territories, and the findings of national and international reports and studies. Mr. Speaker, I want to thank the committee members for their time, energy, and thoughtful consideration and analysis they put into developing the report and recommendations. Thank you, Mr. Speaker.