Incomes rise and poverty falls in Canada

Les revenus augmentent et la pauvreté recule au Canada

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The poverty rate among the under 18 years of age has been reduced from 11% to 9 % in 2017. This proportion amounted to 14.5% in 2013 and 17.1 % in 2007.

The strength of the labour market and the increase in benefits for children of the Trudeau government gave the Canadian an initial increase in income in three years and a reduction of poverty.

The after-tax income of canadian households has increased from 3% in 2017, reported Tuesday by Statistics Canada, from a median of 57 900 $ per year to 59 800 $. Taking into account inflation, the increase was the first real increase in net income in three years.

The improvement is mainly attributable to an increase in annual income wages “, explains the federal agency, ” and a reflection of the growth in employment highest in 2017 “. But not only that.

It is also, she says, the consolidation and enhancement of federal programs of benefit to children in a single Allocation canadian for children set up by the government of Justin Trudeau in 2016 and has just had its first year of full implementation in 2017. “Couples with children have seen their child benefits of medians increase to 1200 $, while the single-parent families have received about $ 1,300 more in 2017 than in 2016. “

On a roll since 2012, the household income of the elderly has also risen by 4.3 % this year, thanks, once again, to the increase of their salaries, but also income from their private pension plans.

Reduction of poverty

The improvement in income has, in particular, helped to reduce poverty significantly in the country, notes Statistics Canada. The proportion of Canadians living under the poverty line set as a function of the ability to buy a basket of food, clothes, pay for his housing, his transportation, and other goods and services essential to meet basic needs — is, in fact, increased from 10.6 %, or 3,74 million people, 9.5 %, or 3,41 million people in one year.

The progress has been even more marked for children, the poverty rate among the under 18 years of age having been reduced from 11% to 9 % in 2017. This proportion amounted to 14.5% in 2013 and 17.1 % in 2007. The road travelled in only a year, is particularly impressive for children living in single-parent families with a woman at their head. Their poverty rate exceeded 41 % in 2013, was still up from 37% in 2016, before falling to 27 % next year. Again, note Statistics Canada lone-parent families, ” this decrease is associated with the increase of benefits for children “.

A little better off than the other, people 65 years of age and over have a tendency to be more stable in the past five years, but have still improved their lot, from 2016 to 2017, from a poverty rate of 4.9 % to 3.9 %.

In Quebec

Households in quebec had in 2017, the median after-tax income, the lowest among canadian provinces (52 400 $), with the exception of Nova Scotia (50 to 200 $), far behind Ontario (62 $ 700), Alberta (70 300 $) or British Columbia (62 100 $), reports Statistics Canada. They have, however, benefited from the second highest increase in income for that year (by 4.2 %), after British Columbia (7.6 percent) and Ontario (4 %).

A quick search in the more detailed data from Statistics Canada shows that the increase in total real purchasing power was only 5% over five years, compared to an average of 6% in Canada and 7 % in Ontario. The pace of progress is not better, but the comparison is a little more friendly when we go back before the crisis, the total increase in after-tax income from 2007 to 2017, amounting to 10.5 % in Quebec, once inflation is taken into account, compared to an average of 9.5 % in Canada and only 5.2 % in Ontario.

Quebec also pulls a little better than the others on the front lines of poverty. To 9% in 2017, its poverty rate was slightly lower than that of the average canadian (9.5 %) and ontario (10.2 per cent).

Ottawa welcomes

The government of Justin Trudeau has not failed, Tuesday, to congratulate them for the progress made under his leadership. “In the last election, Canadians have chosen between the austerity and the cuts of the conservatives and our plan to invest in the middle class, said in an e-mail to the Duty of the minister of Finance, Bill Morneau. We have made targeted investments and smart, and this, in a responsible manner. The results speak for themselves. “

His government announced last year its intention to develop a “canadian Strategy for reduction of poverty” which would, among other things, with the establishment of a first indicator of “official” poverty and a target of 20% reduction by 2020 and 50 % by 2030, relative to 2015.

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