The cost of getting by in Newfoundland and Labrador has climbed sharply again this year, with a new report finding that workers need to earn an average of $27.18 an hour to cover basic living expenses.

That’s $10.83 more than the province’s minimum wage of $16.35 an hour.

The 2026 living wage report, released Monday, Nov. 9, by the Canadian Centre for Policy Alternatives (CCPA) Atlantic, found that the provincial average living wage has increased by 7.39 per cent over the past year.

Dr. Russell Williams, an associate professor of political science at Memorial University and co-author of the report, said the findings are particularly concerning because the biggest increases are happening in areas where families have little choice but to spend money.

“The cost-of-living increase really seems to be targeted in essentials,” he said.

Dr. Russell Williams, an associate professor of political science at Memorial University and co-author of the 2026 living wage report, says the growing gap between wages and basic living costs is leaving working families struggling to make ends meet.

Williams said the gap between minimum wage and what people need to earn is becoming increasingly difficult to ignore.

“It suggests that the minimum wage is no longer an effective public policy intervention. It’s simply not working the way it’s supposed to.”

WHAT’S DRIVING THE INCREASE?

Transportation is the biggest factor behind this year’s rise, according to the report.

The updated calculations more accurately reflect the cost of transportation, alongside increases in the expenses associated with owning and operating a vehicle.

“One of the unique challenges we have broadly in Atlantic Canada, but we really have here in Newfoundland and Labrador, is people are by and large reliant on owner operated vehicles to get to and from work,” he said.

Rising transportation costs are a major factor behind this year’s increase in Newfoundland and Labrador’s living wage. Photo by Unsplash

Food and housing costs are also putting pressure on household budgets.

In Eastern Newfoundland, which includes St. John’s and surrounding communities, the living wage has increased by 8.27 per cent to $27.50 an hour.

Williams said rising rents have contributed to the increase, alongside food and transportation expenses.

The report found that average rent for two-bedroom apartments increased by 6.5 per cent between October 2024 and October 2025.

LABRADOR FACES HIGHEST COSTS

The situation is even more challenging in Labrador and the Northern Peninsula, where the living wage has reached $30.50 an hour.

That’s an increase of 7.77 per cent over last year and the highest regional rate in Atlantic Canada, according to the report.

Williams said food prices are the biggest factor separating the northern region from the rest of the province.

“In the north, it’s groceries. It’s the big difference,” he said.

He said food is already expensive throughout Newfoundland and Labrador, but the problem is particularly severe in northern communities.

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“We need to take a hard look as to why we’re spending so much more on food than people are in other parts of the country.”

Elsewhere in the province, the living wage is $26 an hour in Western Newfoundland and $25.50 in Central Newfoundland.

WORKING BUT STILL STRUGGLING

The living wage is calculated using a reference household with two adults, aged 35 to 44, working 35 hours a week, and two children aged two and seven.

It considers essential expenses such as housing, food, transportation and child care, alongside taxes and government benefits.

The hourly figure represents what each working adult in that household would need to earn to cover those expenses, rather than what every individual in the province necessarily needs.

Williams said the findings reflect a growing problem for families who are employed but still cannot afford everything they need.

He pointed to something he increasingly notices at grocery store checkouts: people having to ask cashiers to put items back because they cannot afford their full bill.

“That’s the affordability issue we’re really trying to focus on,” he said.

“It’s those people that can no longer keep their head above water, right? That their financial situation is simply not sustainable.”

The report also found that some working families earn too much to qualify for government assistance, despite struggling to meet their basic expenses.

Williams said programs such as child benefits and tax credits have income thresholds that no longer reflect how much it costs to support a family.

ARE GOVERNMENT MEASURES HELPING?

The report is critical of the provincial government’s approach to affordability, arguing that broad tax cuts often benefit higher-income households more than those struggling financially.

It points to the $123.1 million spent in Budget 2026 to increase the basic personal income exemption, with almost 70 per cent of the benefit going to households earning more than $100,000 annually, according to the researchers.

Williams said the government needs to focus more closely on raising wages and directing financial assistance towards households that need it most.

“Across the board, tax cuts, as affordability measures, tend to save the most money for high income households,” he said.

He acknowledged that the report does not account for some recently announced provincial energy rebates, which will be reflected in next year’s calculations.

However, he said the government’s broader approach remains insufficient.

“Their measures are too fragmented, too general, and don’t do enough to get the money where it needs to get.”

WOMEN FALLING FURTHER BEHIND

Another finding Williams described as particularly troubling is the number of women earning below the living wage.

The report found that the median hourly wage for women in Newfoundland and Labrador is $26.38, below the provincial average living wage of $27.18.

That means half of women workers in the province earn less than the calculated living wage.

Williams said women are more likely to work in service industries and publicly funded services, where wages have not kept pace with rising costs.

The new report finds that half of women workers in Newfoundland and Labrador earn less than the provincial living wage of $27.18 an hour, highlighting the growing gap between wages and the cost of living. Photo by Unsplash

“That is a canary in the coal mine, right? That is telling us this is not a sustainable economy for real people,” he said.

Williams warned that without improvements, the province risks losing workers to other parts of Canada where they may have better opportunities.

“We need the government to recognize that if you’re a young female worker in this province and this is what the economy looks like for you, you’re probably better off elsewhere in the country.”