Across Northern Canada, territorial governments provide basic social assistance services that reflect the high costs of living in the Canadian territories. The economies of Nunavut, Yukon, and the Northwest Territories depend heavily on transfers from the Government of Canada. In Nunavut, these transfers represent roughly 90% of the territory’s total budget. The levels of basic social assistance vary significantly from territory to territory. The basic amount in 2020 was highest in the Northwest Territories ($26,211 for a single adult considered employable) and lowest in Nunavut ($9,228 for a single adult considered employable). In every case, this basic assistance in the territories is boosted by various federal and provincial benefits and additional social assistance payments. People in the territories who receive social assistance also receive federal tax credits and—in the case of Yukon and the Northwest Territories—territorial tax credits.

Food Insecurity

The high price of food and insufficient access (in particular, to fresh nourishing food) has resulted in massive food insecurity across Northern Canada. The cost to feed a family in the territories far exceeds that of any of the provinces in southern Canada because of the costs of shipping, refrigeration, and other inputs that have only worsened with recent inflation.

Indigenous peoples in the North are acutely impacted by food insecurity. In 2012, the UN Special Rapporteur on the right to food reported that Nunavut’s Inuit population had “the highest documented food insecurity rate for any Aboriginal population in a developed country.”

The same report noted that the rate of food insecurity for Inuit adults was six times higher than the national average. Since 2020, the federal government has invested over $1.1 million to improve food insecurity in Nunavut, with organizations including Food Banks Canada acting as partners to distribute this funding.

Food in the North

Food insecurity is a major concern across Northern Canada. Rates of food insecurity are well above the national figure of 18%: Yukon, 21%; the Northwest Territories, 20%; and Nunavut, 50%. Our 2023 survey revealed that 40% of people in the North struggle to access fresh and affordable food. Unfortunately, the limitations of data collection may mean that the true figures are much higher.

It is well known that the cost of food in the northern and remote parts of Canada are vastly different than in the rest of the country, where a family can spend roughly $400–$500 a week on food.

Unaffordable and Inadequate Housing

Housing costs are also a major concern, although situations differ across the region. Over half of the survey respondents indicated that they are spending more than 30% of their income on rent. With residents on low incomes responding that they spend an average of 50% of their income on other fixed costs, we gather that most Northern residents spend close to or more than 100% of their income on meeting their basic needs.

The Challenges of Finding Work

In addition, the lack of economic diversity and reliance on resource extraction industries like mining and oil and gas contribute to limited employment opportunities in the North. Unemployment in Nunavut, for example, is 12%.

The North also has higher rates of substance abuse and mental health issues than the national average, which can lead to poverty as people struggle to maintain their employment and relationships. In fact, almost half of the respondents in the territories indicated that their mental health was impacting their ability to find work, work effectively, or maintain their finances.

Last-Resort Systems Still Not Enough

As more people in the North struggle, more are forced to rely on social supports. The proportion of EI recipients is 20% higher than the national average, and overall, at least 30% of the population in the North is receiving some kind of social support (12% higher than the national average). Unfortunately, as in much of the rest of the country, social assistance rates are not high enough to make a real difference. Nearly 2 in 5 recipients state that support amounts are not high enough to keep up with the cost of living. Many residents also struggle to navigate the tax system, which means there is likely a smaller uptake of much-needed benefits.

Yukon:

• Better Yukon for All: Government of Yukon’s Social Inclusion and Poverty Reduction Strategy (2012)
  • The Government of Yukon introduced a poverty reduction strategy that builds on the findings from various consultations and studies
• Food Security in Yukon: A Snapshot
  • In November 2020, this report was released by the Yukon Energy Food Security Network. It was intended to capture perspectives on food security in Yukon and its impact on community members.
  • In addition to long-term structural issues related to housing or transportation, the report highlights the unique challenges to Northern food security brought about by the COVID-19 pandemic.

Northwest Territories

• Working Together II: An Action Plan to Reduce Poverty in the Northwest Territories (2019)
  • Following on the 2015 plan, the Government of the Northwest Territories updated its poverty reduction plan in 2019.
• NWT Housing Action Plan (2020)
  • In March 2020, the Government of the Northwest Territories released a three-year plan to address housing accessibility and adequacy.
  • The plan pledged:
    • $2.3 million toward maintaining/increasing social housing supply (224 units),
    • $14.5 million toward repairing and replacing existing social housing stock (168 units), and
    • $8.2 million toward supporting homeownership repair programs (162 units).

Nunavut

• Collaboration for Poverty Reduction Act (2013)
  • In May 2013, the Government of Nunavut passed legislation mandating partnerships with Inuit, non-profit, government, and business organizations on the Nunavut Roundtable for Poverty Reduction.
  • The act essentially legislates the implementation of the Makimaniq Plan and the five-year poverty reduction action plan.
• The Makimaniq Plan 2: A Shared Approach to Poverty Reduction (2017)
  • Building on the foundation of the original plan laid out in 2011, this plan introduces the work of the Nunavut Roundtable for Poverty Reduction and lays out the eight long-term objectives of the territory’s poverty reduction work.
  • The document also includes a data collection plan and proposed indicators of progress to measure the plan’s impact.

Colonialism and Systemic Discrimination

Canadian colonialism and systemic discrimination have played significant roles in perpetuating poverty in the territories. The history of colonialism in Canada involved the displacement, marginalization, and cultural assimilation of Indigenous peoples, leading to the erosion of their traditional ways of life and economic systems. This disruption has resulted in limited access to resources, land, and opportunities for Indigenous communities in the territories.

Moreover, systemic discrimination in areas such as education, health care, employment, and infrastructure development has further deepened the socio-economic disparities. Discriminatory policies, such as the Indian Act, have restricted Indigenous self-governance and economic autonomy, hindering the ability of Indigenous peoples to address poverty effectively.

The remote and isolated nature of many Northern communities exacerbates the challenges, with limited access to essential services and high costs of living. Addressing poverty in the territories requires acknowledging and rectifying the historical injustices and systemic barriers that continue to hinder Indigenous communities’ socio-economic progress.

Decent Work that Pays

1. Further raise the minimum wage

The NWT announced a change to the minimum wage for the start of September 2023 from $15.20/hour to $16.05/hour. This change represents a 5.6% increase, which the territorial government stated, “reflects the percentage changes in the consumer price index”. However, inflation for the 2022 year in the territory was recorded at 7% and living wage in Yellowknife is reported to be $23.28/hour (as a bare minimum). We recommend that the government introduce a subsequent increase to bring the minimum wage up to $17.50/hour before the 2024 inflationary increase is implemented.

2. Review community benefits associated with major infrastructure and mining projects

With the recovery of global commodity prices and the increased interest in Canadian mining, the NWT is well positioned for investment and growth. It is important that all residents benefit equitably from these projects. We recommend the territory put an increased focus on securing not only jobs but also long-term training, apprenticeship, and community benefit investments that will help provide greater employment and economic development opportunities for lower-income residents in the NWT. An updated territorial policy, with enhanced minimum criteria, should be developed and led chiefly by a government agency that is not directly associated with the department of Industry, Tourism and Investment.

Cost of Living

3. Index income assistance, the NWT Child Benefit, and all other benefit payments

The territorial income assistance, NWT Child Benefit (NWTCB), and other benefit programs are not currently indexed to inflation, meaning their value diminishes in real terms every year. Given the surge in inflation in recent years, the territory has had to intervene with other help rather than have an automatic stabilizer to better assist residents in time of need. We suggest that the government comprehensively increase benefits by 15%, compounded over the next three years, after which time increases are indexed to inflation in perpetuity.

Affordable Housing

4. Adopt meaningful rent control

The broad introduction of the Canada-NWT Housing Benefit rent supplement program, which to date has no active waiting list, offers an opportunity for the territory to take further steps to protect renters. We recommend the NWT consider implementing a rent control guideline policy, similar to those in Ontario and other provinces, that sets an upper limit on the degree of an annual rent increase and the conditions under which this can be graduated in light of repair and maintenance.

5. Develop a formal municipal matching fund for rental construction

Using Yukon’s successful municipal rental construction fund as a model, the NWT should investigate the creation of a municipal/territorial grant matching model to assist developers of purpose-built rental construction. This can be developed with a small pool of capital funding to begin with, and scaled over time as dedicated funding is established.

Community Infrastructure

6. Federal leadership to address critical infrastructure gaps in housing, food production, and broadband

The territorial government should make it a top priority to develop a long-term capital plan, jointly endorsed and funded by the Government of Canada, with the goal of reducing gaps between northern and southern communities in three key areas over the next five and 10 years: housing, broadband, and local food production.