There's a third factor in all this. The Ontario provincial government recently tabled a proposal to raise the minimum wage in Ontario to $10/hour. While I am applauding the move in some ways, I suspect that too many would-be employers will simply view it as an "unwelcome mat". The last place I worked at (telephone interviewers) paid its employees just over $8/hour; nobody earned anywhere near the new minimum rate. If this provincial law passes, I suspect they will simply pack their bags and move the work somewhere else ... too bad for another batch of unemployed ex-workers.

Does this mean we should oppose increases in the minimum wage? No, but we need to pushing the employers for pay raises ourselves -- don't leave it up to the government.