Medicine Hat Receives Lowest Living Wage in 2025 Rankings

Medicine Hat's Local Affordability Advantage

Medicine Hat received further confirmation of its status as Alberta’s most affordable community with the release of the 2025 Living Wage calculations. The city’s new living wage is $18.15 per hour, which is the lowest of the 21 Albertan communities that participated in this year's study and well below the Alberta average (low-mid $20s). Of note, 15 of the 21 communities experienced a living wage increase this year, including Medicine Hat, as costs rose across the board. Even with the increase, however, Medicine Hat’s living wage topped the rankings and has only increased by $0.65 since coming in at $17.50 in 2022.

By comparison, nearby communities posted wages significantly higher than Medicine Hat, including Brooks ($22.00), Lethbridge ($22.30), Calgary ($26.20), and Airdrie ($29.00). While certain factors impact overall affordability, such as population density, proximity to major metropolitan areas, and local industry, Medicine Hat maintained living wage below $20 despite being one of the larger cities in this year’s rankings. Meanwhile, the higher living wage calculations for communities such as Airdrie ($29.00) and Jasper ($31.80) underscored how dramatically affordability varies across the province.

How is the Living Wage Calculated for Each Community?

The living wage rate is calculated once per year by analyzing the real costs associated with living in each participating Albertan community. Specifically, the living wage calculations represent what a worker must earn to cover basic needs - including housing, food, transportation, childcare, and other essentials - while still participating in community life with dignity, rather than the bare minimum wage needed to scrape by and survive. Unlike the provincial minimum wage, which was last increased to $15 in 2018, the living wage is recalculated annually to reflect actual local costs of living.

Several considerations are taken into account while calculating the living wage to ensure a wide range of situations and circumstances are properly reflected. In addition to necessities, education and healthcare costs, and wider household expenses like recreation and cell phones, three different household circumstances are considered including: 1) two parents with two young children, 2) a lone parent with one young child, and 3) a single adult living alone. In each, all adults are assumed to work 35 hours/week, then the costs and needs are calculated individually before being averaged using provincial data to generate a single community rate.

A Living Wage Reflects Real Costs

By experiencing a relatively small increase and receiving the lowest living wage of the 21 participating communities, Medicine Hat continues to offer one of the province’s most sustainable cost-of-living environments. Lower housing and transportation costs, along with access to affordable childcare, necessities, and utilities, helped keep the local rate well below larger urban centers.

Housing costs, one of the largest drivers behind the widespread cost increases in the province, were a significant advantage for Medicine Hat. While housing costs across Alberta increased 10%, on average, the average price of a home in Medicine Hat only increased by a little over 5% from $360,692 to $379,945 YoY in July 2025. This was one of the biggest factors driving affordability in Medicine Hat, even though the local real estate market has experienced significant activity over the last 12 months. 

A Living Wage - Beyond Survival, Towards Dignity

As previously mentioned, most communities across Alberta saw their living wage rise this year, evidence of what the Alberta Living Wage Network (ALWN) calls an “affordability crisis.” The escalating costs for housing, food, transportation, and childcare in the province are currently squeezing household budgets, with lower-wage earners the most at risk. 

“The living wage isn’t about luxury - it’s about basic participation,” said the ALWN. “It represents the amount needed for individuals and families to live modestly, work with dignity, and engage in their communities.” Individuals earning below the living wage not only experience financial struggles, but this also has a negative impact on their mental and physical health/well-being. Meanwhile, studies demonstrate that a widespread increase in lower-end wages only has a short-term, limited impact on overall costs and inflation for a community.

Medicine Hat’s relatively low living wage rate doesn’t mean wages are high - rather, it shows that the real costs of living are more manageable here than almost anywhere else in Alberta. This supports the report MoneySense released this September, which ranked Medicine Hat as one of the top 5 most comfortable Canadian cities, which was an examination of 79 communities based on the income needed to live comfortably in that community. 

The Business and Community Case

For employers, the living wage calculations offer not just a benchmark, but an opportunity. While increasing costs can be difficult to accommodate, there are several advantages for employers who ensure they meet or exceed the local rate. These employers report better staff retention, higher employee morale, and stronger productivity, with lower employee turnover and absenteeism.

For the broader community, more income in workers’ pockets means more local spending, healthier families, and reduced reliance on social programs. That stability helps both households and businesses thrive, as capital is available for expenditures beyond their necessities, creating a positive economic feedback loop.

It should be noted that the ALWN acknowledges that it’s not feasible for every employer to immediately increase wages to meet the new benchmark. Sharing these figures is more about sparking important conversations within a community related to affordability, quality of life, economic development, and well-being.

Affordability and Looking Ahead 

As Alberta continues to experience high population growth, inflation, and cost pressures, Medicine Hat’s pole position in these rankings underscores its reputation as an affordable, livable city that balances opportunity with quality of life. And, at $18.15 per hour, the local living wage highlights to all of Alberta what many Hatters already know: it’s a great place to live, work, and build a future.

Here are the full 2025 Living Wage Network rankings, appearing in alphabetical order: 

• Airdrie $29.00
• Barrhead $21.55
• Bonnyville $22.15
• Brooks $22.00
• Calgary $26.20
• Cold Lake $19.10
• Drayton Valley $20.35
• Edmonton $22.30
• Fort McMurray $23.00
• Grand Prairie $21.80
• High River $23.40
• Jasper $31.80
• Lethbridge $22.30
• Lloydminster $21.55
• Medicine Hat $18.15
• Red Deer $20.65
• Rocky Mountain House $21.85
• Special Areas $21.25
• Spruce Grove $23.70
• St. Albert $25.60
• Stony Plain $24.30