Quick Hits - December 13, 2023 - American Society of Employers - ASE Staff

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Quick Hits - December 13, 2023

U.S. States 2024 Minimum wage updates:  Click here to see minimum wage rates for 2024 by state. 

Mexico minimum wage increase 2024: On December 1, 2023, the National Minimum Wage Commission (“CONASAMI” for its acronym in Spanish) agreed to increase the general minimum wage to $248.93 pesos per day and $374.89 pesos per day in the Free Economic Zone of the Northern Border, effective January 1, 2024. This represents a 20% increase in both zones.  The municipalities included in the Free Economic Zone of the Northern Border are: a) Baja California: Ensenada, Mexicali, Playas de Rosarito, Tecate and Tijuana, b) Sonora: Agua Prieta, Aitar, Caborca, Cananea, General Plutarco Elías Calles, Naco, Nogales, Puerto Peñasco, San Luis Río Colorado, Santa Cruz and Sáric, c) Chihuahua: Ascension, Coyame del Sotol, Guadalupe, Janos, Juárez, Manuel Benavides, Ojinaga and Praxedis G. Guerrero, d) Coahuila: Acuña, Guerrero, Hidalgo, Jiménez, Nava, Ocampo, Piedras Negras and Zaragoza, e) Nuevo León: Anahuac, and f) Tamaulipas: Camargo, Guerrero, Gustavo Díaz Ordaz, Matamoros, Mier, Miguel Aleman, Nuevo Laredo, Reynosa, Río Bravo and Valle Hermoso. Source:  Littler 12/4/23

Canadian minimum wage went up in 5 provinces October 1, 2023:  The following minimum wage increases include:

  • Saskatchewan: Effective Oct. 1, 2023, the minimum wage will be $14 per hour — up from $13 per hour as of Oct. 1, 2022. Next year, on Oct. 1, 2024, the wage will rise again to $15 per hour.
  • Manitoba: As of Oct. 1, 2023, the province’s minimum wage will be $15.30. This follows an earlier increase on April 1 to $14.15, after an increase on Oct. 1, 2022, to the rate of $13.50.
  • Ontario: The government is increasing the minimum wage to $16.55 an hour on Oct. 1, 2023, up from $15.50; this increase is tied to the Ontario Consumer Price Index for 2023.
  • Nova Scotia: The minimum wage rate will rise to $15 on Oct. 1, 2023 — up from $14.50 in April. That’s after the province accepted the recommendations from the Minimum Wage Review Committee, which include setting the minimum wage at $15 an hour on Oct. 1, six months sooner than scheduled.
  • Prince Edward Island: The province’s minimum wage will reach $15 per hour by Oct. 1, 2023. That follows an increase of 80 cents on Jan. 1, 2023, to $14.50.

Source: HRReporter 9/2/23

Small employers lead hiring surge yet can’t keep employees:  According to ADP, small businesses under 50 employees added 95,000 jobs this fall, while large employers with 500 or more employees cut 83,000 jobs. The opposing trends point to small employers still needing growth in order to produce, while large employers can afford to trim their workforce down to mediate the effects of inflation on their businesses, explains Tina Wang, vice president of HR at ADP. This is good and bad news for jobseekers who may have been disheartened by low hiring rates this fall — there are jobs out there, but they may not come with the most competitive wages and benefits.  ADP found that only 18% of small businesses plan on changing wages in the next three months, compared to 50% of mid-sized businesses (companies with 50 to 999 employees) and 58% of large businesses (companies with 1,000 or more employees). In the Detroit metro area with the Big Three wage concessions, small and medium size businesses will have to look more closely at wages, which could lead to wage inflation as pricing to cover the increases hit the OEMs and other clients.  Finding the magic sauce of wage increase and benefits provided will take time.  Source:  EBN 11/30/23

Big surprise, lying in interviews:  Most people aren’t totally honest when they answer questions like, “Why did you leave your previous role? “Where do you see yourself in five years?” and “Why do you want to work here?” during job interviews. In fact, a whopping 80% of workers say they’ve lied in a job interview, and 44% admitted to frequently lying, according to an August survey from ResumeLab from 1,900 respondents. But it is getting worse.  Hiring managers are perhaps more distrusting than ever in believing applicants are presenting themselves accurately, as more people are using generative AI to craft their application materials, like resumes and cover letters, and even answers to potential interview questions and writing assessments. Almost half of job seekers used generative AI in job applications this year, a Gartner survey found. The ResumeLab survey also found that applicants with higher education levels — those holding master’s or doctoral degrees — reported the highest instances of lying in interviews (85%), followed by those without a college degree (71%). Candidates with a bachelor’s or associate’s degree were least likely to lie (63%).  Source: WorkLife 11/30/23

Mental health hits productivity in the workplace: TELUS Health has released its monthly TELUS Mental Health Index, revealing that U.S. workers with diagnosed depression lose 51 working days in productivity per year. The October Index also found that 27% of workers say better support for their wellbeing is more important than a 10% increase in salary. According to the Index, mental health and work-related stressors are linked to productivity loss at work. Approximately 19% of workers with a mental health score of 50 or lower experience a significantly higher productivity loss than workers with a mental health score of 90 or more. The isolation score of workers improved nearly one point, yet it remains the second lowest mental health sub-score for the 18th consecutive month.  Workers reporting workplace conflict lose 42 working days in productivity per year. When asked about their most valued elements of health benefits, most workers in the U.S. prioritize medical coverage (72%), followed by medication (36%) and dental benefits (35%). More than 11% of workers value psychological services the most.  Workers under 40 are nearly three times more likely than workers over 50 to value psychological services most.  Source:  CCH 12/1/23

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