A new report says hundreds of thousands of workers across British Columbia continue to struggle with affordability despite another increase to the province’s minimum wage taking effect June 1.

Research released Thursday by BC Policy Solutions and Living Wage BC found roughly 775,000 workers — about one-third of all employees in the province — earn less than the living wage in their community.

The provincial minimum wage is set to rise by 40 cents to $18.25 per hour this weekend, but researchers say the increase still leaves a substantial gap between wages and the actual cost of living.

“Even with regular minimum wage increases tied to inflation, too many workers continue to earn less than it costs to live in BC,” said report author and BC Policy Solutions senior economist Iglika Ivanova.

“These households face impossible choices — buy groceries or heat the house, keep up with bills or pay the rent on time.”

The living wage is calculated as the hourly amount a full-time worker needs to earn to cover basic expenses without falling into chronic financial stress.

According to the report, living wages across B.C. now range from $21.55 per hour in Grand Forks to $29.60 in Whistler.

In Kamloops, the living wage was calculated at $24.45 per hour — more than six dollars above the incoming minimum wage.

Ivanova said Statistics Canada data obtained for the report shows approximately 17,300 workers in Kamloops earn less than that threshold, accounting for 27% of the city’s workforce.

“That’s alarming. That’s a lot of people,” Ivanova told Radio NL.

“And it’s a lot of people who are working and doing everything right, but through no fault of their own, they’re just not able to cover their cost of living with their paycheques.”

The report says the affordability gap has widened in recent years as the cost of essentials has increased faster than overall inflation.

Ivanova pointed specifically to housing, food and transportation costs.

“The problem now is that we have seen the cost of basics — the cost of food, the cost of shelter and now the cost of transportation — going up a lot faster than general inflation,” she explained.

“So when we tie minimum wages to general inflation, there is a widening gap between what people are actually spending their money on and what the minimum wage actually covers.”

Researchers say food and transportation costs are expected to continue climbing this year due in part to global instability and rising oil prices linked to the ongoing conflict involving Iran.

The report also notes rents remain unaffordable for many households despite cooling slightly from peak levels seen in recent years.

Ivanova acknowledged some business owners oppose minimum wage increases due to rising operating costs, but argued workers should not be expected to absorb the burden of the affordability crisis.

“The question here is, should businesses be able to operate at the expense of workers?” she said.

“We’re seeing an increasing number of people having to go to the food bank after work.”

The report says low wages are also not limited to teenagers or entry-level workers.

Researchers found most workers earning below the living wage are over the age of 25, challenging what Ivanova described as a common misconception about minimum wage earners.

“This isn’t an issue of young workers,” she said.

“It is about structural inequalities in the labour market.”

The report recommends several policy changes, including raising the minimum wage to $20 per hour, increasing affordable housing investments, expanding public transit and strengthening government income supports.

It also calls on more employers to voluntarily adopt living wage standards.

More than 500 employers across B.C. are currently certified as living wage employers, including several in Kamloops.