Median income of families in Canada rises to $66,800

Median income of families in Canada rises to $66,800 (1)

In 2020, the median tax for the families in Canada and unattached individuals was $66,800. This figure showed that there is an increase of $4,400 in comparison to the previous year. The increase in the after-tax income has become a problem for people whose income was low. They have to go for income support programs because of the economic shutdown due to COVID-19.

In 2020, the poverty rate was 6.4 percent which was lower than the poverty rate, which was 10.3 percent in 2019. According to the Statistics Canada, the Canadian government has launched a number of programs to support the businesses and individuals.

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Losses due to COVID-19

In March 2020, Canada has imposed travel restrictions to control the spread of the pandemic. This affected the labor market of Canada and the income of the individuals and families. The median income of the families and individuals came down to $55,700 in 2020 from $57,600 in 2019.

Because of the losses in employment and income, Canadians have to turn to income support measures. New programs were also launched, which include

  • Emergency Response Benefit
  • Canada Recovery Benefit
  • Canada Emergency Student Benefit

These programs helped 8.1 million Canadians as they provided the support of $82 billion. The median amount received by the families was $8,000. The relief programs led to the doubling of the median government transfers, which was $8,200 in 2019 and $16,400 in 2020.

Fall of poverty rate

Canada has adopted Market Basket Measure for Official Poverty Line in June 2019. According to MBM, a family is considered to be in poverty if it is not able to purchase the required goods or services.

In 2020, the number of people living below the poverty line was 2.4 million, which is 6.4 percent of the total population. The poverty rate has been coming down in the previous years, and a high amount of decrease was found in 2019 and 2020.

Poverty rate for children cut half

In 2020, people of all age groups found a decrease in the poverty rate. The decrease rate for each province is as follows.

  • Saskatchewan – 6.7 percent to 5.2 percent
  • Prince Edward Island – 7.6 percent to 4.7 percent
  • Manitoba – 6.8 percent to 4.7 percent

Families vulnerable to poverty

There are some types of families that are vulnerable to poverty. These families include lone-parent families and unattached individuals. The poverty problem for these people is still not resolved in spite of decline of the poverty rate.

The poverty rate for unattached individuals in 2019 was 26.9 percent which reduced to 20.9 percent. The poverty rate for lone-parent families was 22 percent in 2019, which reduced to 13.5 percent in 2020.

High risk for persons with disabilities

Many people having a disability are below the poverty line. The total percentage of such people is 8.5 percent. The poverty rate for these people was 13.7 percent which came down to 5.2 percent in 2020.

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