New Data Reveals Canadians Facing Persistent Low Income
Statistics Canada has recently unveiled findings regarding persistent low income among Canadians over a seven-year period from 2016 to 2022. The study highlights specific demographics most affected by this ongoing challenge.
Key Findings on Persistent Low Income in Canada
According to the data, individuals from female lone-parent families are notably impacted, with 23% facing consistent low income. Moreover, 21% of those without a high school diploma also fall into this category. Additionally, 18% of individuals reporting hardships in daily activities face similar financial difficulties.
Education and Immigration Factors
- People without a high school diploma are five times more likely to experience persistent low income.
- Recent immigrants are more than twice as likely to face low income compared to non-immigrants.
- Tax filers from racialized groups are twice as likely to report persistent low income compared to their non-racialized, non-Indigenous counterparts.
Statistics on Income Trends
Among Canadian tax filers aged 15 years and older, 9% experienced persistent low income, remaining in this status for at least four out of the seven years analyzed. Notably, of those who reported low income in 2016, 30% were able to escape this status the following year. However, 20% reverted to low income by 2018.
Concerns Over Poverty and Economic Inequality
The National Advisory Council on Poverty issued a report in 2025, highlighting that Canada’s social safety net is not equipped to handle current socio-economic pressures. This report pointed to multiple crises affecting Canadians, including a global pandemic, inflation, and housing challenges.
Continued Frustration and Urgency
Conversations with individuals across Canada revealed frustrations about rising poverty rates and inadequate support systems. The Council emphasized that the existing programs do not keep pace with the growing needs of the population.
Broader Economic Context
Statistics Canada has noted a growing income gap in Canada. Lower-income households have particularly struggled due to declining interest rates and self-employment income. Simultaneously, middle-income households have seen worsening net savings due to stagnant wage growth.
These findings further underline the pressing need for effective policies that address the challenges faced by Canadians experiencing persistent low income. With the economic landscape continuously evolving, immediate action is imperative.
