As an organization that supports a network of associations spanning coast-to-coast-to-coast, Food Banks Canada recognizes that our work takes place on the traditional territories of Indigenous Peoples that have cared for this land that we now call Canada since time immemorial.

We acknowledge that many of us are settlers and that these lands that we live, work, meet and travel on are either subject to First Nations self-government under modern treaty, unceded and un-surrendered territories, or traditional territories from which First Nations, Metis, and Inuit Peoples have been displaced.

We are committed to decolonization and to dismantling the systems of oppression that have dispossessed Indigenous people of their lands, including the land on which we operate on, and denied their rights to self-determination.

Food Banks Canada is deeply committed to respecting the principles of Equity, Diversity, and Inclusion (EDI) in all we do. As part of our ongoing efforts to develop inclusive environments, our team used an EDI framework to guide us throughout the development of this report.

We recognized the importance of incorporating diverse perspectives from the earliest stages of conceptualization to ensure that our work considered and reflected a robust range of viewpoints. We conducted early consultations with experts—both professionals and people with lived experience—from across the country, actively seeking the participation of individuals from diverse backgrounds and with a range of lived experiences. These consultations provided direction for our team on much of the process, including data collection and policy development.

The data collection process included the analysis of intersectional demographics. Despite conducting a large national survey, the sample sizes of specific groups within the dataset made it difficult to reliably report on important subsects of the population, like racialized communities in each of the provinces. Despite this, we made every effort to be
transparent and identify areas where systemically marginalized communities are disproportionately impacted.

The final report underwent a third-party EDI analysis to ensure maximum representation and inclusivity.

As we move forward, Food Banks Canada remains committed to learning and to improving our approach to better include and represent all the members of our diverse community. We will continue to seek new and better ways to embrace EDI principles in our reports and all the work we do. Our vision is a Canada where no one goes hungry. This vision is inclusive of every person within our borders, irrespective of race, national or ethnic origin, language, citizenship, colour, religion, sex, sexual orientation, gender identity, gender expression, income source, age, or mental and/or physical ability.

While poverty in Canada is determined by a range of factors and contexts, it does not affect everyone equally. Rather, it is a phenomenon that is, at its core, produced and sustained by colonialism, racism, marginalization, sexism, heteronormativity, ableism, and many other types of exclusion.The key to addressing poverty in Canada lies in understanding that certain groups of people lack access to adequate food, housing, social services, and social and political participation. In fact, the data clearly shows that, as a general trend, First Nations people, Métis, Black people, racialized people, people with disabilities, single people, women, transgender people, immigrants, and refugees are the most vulnerable to experiencing poverty.

Putting Canada’s deeply racialized and gendered poverty in perspective, disaggregated data from the 2021 census shows that the poverty rate in Canada was 8.1% in 2020, down from 14.5% in 2015. Despite this general downward trend, the census data also reveals a more nuanced and unequal picture. For example, it shows that Indigenous people living in urban areas experience poverty at a higher rate than other groups. In Canada’s largest Indigenous urban centre, Winnipeg, 23.2% of First Nations people, 10.5% of Métis, and 14.4% of Inuit lived in poverty in 2020. Countrywide, 14.1% of First Nations, 9.2% of Métis, and 10.2% of Inuit experienced poverty in 2020. In total, 13.9% of Indigenous people aged 16 and older were poor. Among racialized populations, 15.8% of Chinese people, 12.4% of Black Canadians, and 10.8% of South Asians lived in poverty. Census data also indicates that poverty is more prevalent among recently landed – that is, between 2016 and 2021 – and non-permanent residents – for example, refugees – 16.1% and 41.8% respectively.

These racialized rates are significant in terms of eliminating poverty and its underlying causes given that 26.5% of Canadians consider themselves to be a member of a racialized group, a number that is predicted to increase to 41% by 2041.

Regarding poverty and gender, the poverty rate of single mothers with a five-year-old child or younger was the highest of all family types at 31.3%. In addition, 12.9% of transgender men, 12.0% of transgender women, and 20.6% of non-binary people lived below the poverty line.

In view of this snapshot of Canada’s racialized (and gendered) poverty, it is not surprising that racialized people disproportionately experience inadequate access to work (including a living wage), housing, social services, and health services. For example, 40% of racialized people – compared to 29% nationally – report low employment earnings. The numbers are markedly worse for Indigenous people, as 50% of this population earns a low wage. A recent analysis by Statistics Canada shows that despite being more likely to have a post-secondary degree, racialized Canadians are less likely to find jobs that pay well and offer benefits at the start of their careers. On average, racialized women made $45,700 per year compared to $47,800 for non-racialized and non-Indigenous women; and racialized men made $51,600 per year compared to $54,100 for non-racialized and non-Indigenous men.

Unfortunately, a new study by Statistics Canada concludes that income inequality is a persistent problem for racialized workers. Proving that the labour market continues to discriminate against racialized groups and women, the study concludes that racialized men’s and women’s average weekly earnings could fall as much as 31.8%. In particular, the largest differences were observed among Black, Filipino, and Latin American men and Black, Southeast Asian, and Latin American women.

However, the problem is not only that racialized and Indigenous people make less than non racialized and non-Indigenous people but also that they face greater difficulty in accessing stable employment: 38% of racialized people – compared to 25% nationally – cannot attain job stability. At 29%, the proportion of racialized people aged 55–74 finding it difficult to secure a stable job is almost double the national average (15%). Racialized people considered the lack of training opportunities and apprenticeships to be one of the greatest obstacles in their quest for stable employment.

Given the current housing crisis and the fact that racialized people and Indigenous people are disproportionately disadvantaged by low employment earnings and job insecurity, it is unsurprising that racialized people and Indigenous people struggle to keep up with rising rent prices. While on average 42% of racialized people – compared to 31% nationally – had a hard time paying rent, the rate is much higher for women (nearly 50%) and Indigenous groups (47%). While poverty tends to disproportionately affect younger people, older generations of racialized people continue to find rent prices unaffordable. In fact, 30% of racialized people and 28% of Indigenous people are considered to live in core housing need, as they spend 30%–50% of their income on rent, compared to the national average of 23%. A current housing analysis further indicates that, among racialized groups, West Asian (19.5%), Korean (18.7%), and Arab (14.9%) people experienced core housing needs. It also states that while roughly 30% of the Canadian population rents, Black (45.2%), Arab (48%), and Latin American (48.6%) populations were most likely to rent. Given these numbers, it not surprising that these marginalized groups find it hard to find adequate housing (30% of racialized people and 36% for Indigenous people versus 21% nationally).

In addition to facing significant disadvantages in the housing and labour markets, marginalized individuals and communities encounter difficulties accessing social services. In comparison to the national average of 21%, 30% of racialized people and 34% of the Indigenous population struggle to access social services. The rate is also alarmingly high for older generations (33%). Even when they can access governmental support, the social assistance rates that racialized people (32%; older generations 35%) and Indigenous people (47%) receive are not high enough to keep up with costs of living. These challenges are exacerbated by the fact that these historically disadvantaged groups have difficulties navigating the tax system (46% of racialized people and 53% of Indigenous people compared to 40% nationally).

The link between poverty and a range of health problems has been widely established in studies in both Canada and the United States. Poverty not only affects people’s access to basic needs (i.e., quality food and housing) but also limits their ability to fully participate in society and restricts their freedoms.

For example, it has been estimated that 23% of premature deaths among Canadians can be linked to income inequality. As regards mental health and addiction, countless studies have shown that the inability to meet one’s basic needs and fully participate in society and exercise one’s freedom causes stress and strain, very often leading to depression and anxiety. The effects of poverty on mental health and vice versa are further exacerbated by inadequate access to primary health care and community mental health services. Given that low income is a determinant of health, historically marginalized and disadvantaged groups are particularly vulnerable to experiencing poor physical health and mental illness. Racialized (38%) and Indigenous people (46%) report that their mental health affects their ability to find employment, work effectively, or maintain their finances. These rates are significantly higher than the national average (28%). While addiction is less of a problem among racialized groups, Indigenous communities and individuals (66% compared to 51% nationally) disproportionately experience addiction, even though Indigenous populations say they now have better support for mental health and/or addiction policies (+6%).

The data clearly shows that poverty is not simply a matter of falling on hard times or lacking basic resources. If that were the case, poverty would be experienced at similar levels across society. Rather, poverty disproportionately affects marginalized groups and communities because of underlying and systemically embedded social inequities. At its core, eliminating poverty in Canada requires addressing systemic inequities and revising the social norms, processes, policy decisions, and legislations that have created and perpetuated them.

In 2002, Quebec developed Canada’s first poverty reduction strategy. Since then, some provinces, territories, and the federal government have followed suit with plans of their own. Along the way, some governments have made great strides in their poverty reduction journey, while others have lagged behind.

Now, in 2023, as Canada is faced with a new set of poverty and food insecurity challenges, Food Banks Canada is introducing the country’s first comprehensive poverty report to capture the nuances of provincial, territorial, and federal perspectives in one place. The report and corresponding report cards are accompanied by a set of policy recommendations for each level of government, which act as a roadmap to steer the country toward a future where poverty and food insecurity are a thing of the past.

Today, however, poverty is a reality for at least 2.8 million Canadians, and even more live with food insecurity. This dire situation has led to unprecedented numbers of food bank visits. In March 2022, food banks had almost 1.5 million visits, and the numbers continue to rise. Our country needs a collective and concerted effort from all levels of government to ensure that poverty growth not only slows down but actually reverses course so that we can get Canada to a place where no one is forced to turn to a food bank to make ends meet.

This task cannot be done by one government body alone. Local, provincial, territorial, and federal governments will have to work in unison to tackle poverty head-on. While every province and territory is affected by poverty, each region faces unique challenges and requires different, nuanced solutions. By shining a spotlight on the poverty landscape in every province and territory in the country, we hope to stimulate dialogue, cooperation, and innovative approaches to address this most significant of issues.

This report examines the state and experience of poverty across the country and offers an analysis of poverty reduction efforts in each jurisdiction. The report not only contains an analysis of poverty in each province and territory – and a high-level federal analysis – but also contains thoroughly developed report cards based on diverse and reliable data sources. These report cards will serve as a signal to Canadians and governments, as it enables us to assess and compare the performance of all governments in their efforts to eliminate poverty across Canada.

We aim to encourage greater transparency, accountability, and enhanced poverty alleviation efforts, and so this report has been developed with several audiences in mind.

The report cards and accompanying analysis will help policymakers and decision-makers in all levels of government to gauge their performance in the fight against poverty and how they can do better by identifying strengths, weaknesses, and opportunities for future progress.

The report also aims to increase the public’s understanding of the extent of the assistance (or lack thereof) provided by their provincial and federal governments to individuals and families who live in their communities and are struggling with low incomes and poverty.

As such, this report is designed to be accessible to everyone and to offer an insightful window into the precarity of life in poverty and the various poverty reduction initiatives and programs initiated by our governments.

We hope that people will use this knowledge to participate in informed discussions and advocate for policies that can make a tangible difference in Canada and help us build a country where no one goes hungry.

Canada’s Official Poverty Line / Market Basket Measure

This is the official measure of poverty in Canada, as set in Canada’s First Poverty Reduction Strategy. It is based on the annual cost of a typical ‘basket’ of good and services that a reference Canadian family (defined as two adults and two children) need to participate in society, representing a modest, basic standard of living. This includes food, clothing transportation and shelter.

The cost of this basket of goods is called the Market Basket Measure (MBM). The MBM has been priced for 53 different geographic areas to reflect the potential differences in the cost of goods across different communities. The Northern Market Basket Measure (MBM-N) has been calculated separately for the Northwest Territories and the Yukon to take into account the higher cost of living in the north.

According to Stats Canada: the income measure used to compare against the MBM thresholds is the disposal income for the MBM. When the disposable income for the MBM of an economic family member or a person not in economic family falls below the threshold applicable to the person, the person is considered to be in low income according to MBM.
Visit Stat Canada for more information on the Market Basket Measure

Core Housing Need / Affordable Housing

This is an indicator that determines how well housing needs are being met. It considers if a household can afford suitable, adequate, and affordable housing in their community. A household is considered to be in Core Housing Need when it doesn’t meet these standards.

Housing is considered adequate when it isn’t in need of major repairs, like defective plumbing or electrical wiring or structural damage. Housing is considered suitable when there are enough bedrooms for the make-up of the household. Housing is considered affordable when it costs less than 30% of before-tax household income.
Visit CMHC for more information on Core Housing.

Fixed Costs beyond housing

This refers to the average amount households spend on fixed costs other than housing, including internet, transport, groceries and utilities. Costs are considered fixed when they don’t change very much in cost month to month.

Food Insecurity

A household is considered food insecure when it experiences inadequate or insecure access to sufficient quantities of food due to financial constraints. Household food insecurity is tracked by Stats Canada, which allows for monitoring of this rate over time.
Visit Stats Canada for more information on food insecurity.

Government Support

Government support, also called benefits, refer to a range of financial assistance provided by the Federal Government to individuals or households. Support eligibility is determined by characteristics, including age, employment status or whether the household includes children.

Government supports include Employment Insurance, child benefit, pensions, and benefits for housing, student aid, family, disability, among others.
Visit the Government of Canada website for more information on government support.

Material Deprivation Index (MDI)

A Material Deprivation Index is a way to measure poverty through the lens of deprivation. Unlike other measures of poverty which are based on income, the MDI looks at the goods and activities a household with an acceptable, above poverty, standard of living would be expected to have in a wealthy country like Canada. The MDI is a complimentary tool that could be used in conjunction with the MBM, or other income-based measures of poverty such as the Low-Income Measure.

A household’s ability to afford a decent standard of living is influenced by a range of factors, like debt and availability of support. As the MDI is more sensitive than the MBM to circumstances that impact households purchasing power, this type of indicator has been found to be well suited to understand how factors like rapid inflation and rising energy costs impact household finances. Households that are unable to afford several of items on this list are considered to be materially deprived, which indicates they are more likely to live in poverty.

Social Assistance

Social Assistance refer to the range of financial assistance provided by Provincial or Territory Governments to individuals or households. The type of social assistance available varies by province and territory. Support eligibility is determined by characteristics, which may include age, employment status, whether a person has a disability, or whether a household includes children. Social assistance is typically defined as income of last resort, intended for those who have no other means of financial support, and eligibility is determined based on a needs test.

Visit provincial or territory government websites for more information on the specific social assistance available.

Unemployment Rate

This measures the number of unemployed persons, as expressed as a percentage of the total labour force. This rate is calculated monthly by Stats Canada through the Labour Force Survey.
Visit Stats Canada for more information on the unemployment rate.

Authors:

Philippe Ozga , Chief Network and Government Relations Officer

Isaac Smith, Manager of Policy and Government Relations

Dana Vreeswijk, Policy and Advocacy Officer

EDI Analysis done by Empowered EDI: