Article content

If you expect a long line of eager prospective employees to show up for your minimum wage job posting, it might be time to rethink your business model and your attitude.

When labour is in short supply, it should create upward pressure on wages, but B.C. businesses don’t seem to be getting the message, says Mark Thompson, a professor emeritus at UBC’s Sauder School of Business.

We apologize, but this video has failed to load.

tap here to see other videos from our team. Try refreshing your browser, or Cheap and abusive bosses need to adapt to a new B.C. economy Back to video

“People will take low-skill jobs if you pay them enough, but you have to make it worth their while,” he said. “Economic theory says if you are short of something, raise the price. If they want better applicants in the hospitality sector, they should be raising wages, but they aren’t.”

Retail and hospitality businesses have historically paid minimum wage to as many of their employees as possible, but some businesses have recently announced that they are closing or cutting hours of operation due to employee shortages.

“If you have structured your business and your loans on the basis of paying minimum wage, you are going to have to rethink your business model,” said Thompson.