Introduction
The following information is compiled and presented by Quality of Care NL, an applied health and social systems research and evaluation program aimed at improving social and health outcomes in Newfoundland and Labrador. Click here to download a PDF version of the information presented below
Income is one of the most important social determinants of health (SDH). Level of income shapes overall living conditions, affects psychological functioning and influences health-related behaviours. It determines the quality of other SDH, such as food security, housing security and other basic prerequisites of health. More equal income distribution has proven to be one of the best predictors of a society's overall health.1
1Raphael D, Bryant T, Mikkonen J, Raphael A. (2020). Social Determinants of Health: The Canadian Facts. Oshawa, ON: Ontario Tech University Faculty of Health Sciences and Toronto, ON: York University School of Health Policy and Management. Retrieved from https://www.thecanadianfacts.org/.
Income Information: NL and Canada
Community Accounts (Department of Finance) is an innovative information system that provides community, regional and provincial data. It is built on a well-being framework and provides users with key social and economic indicators.
Income Information for Newfoundland and Labrador and Canada, 2019 and 2020
| Newfoundland and Labrador | Canada | |||||||
|---|---|---|---|---|---|---|---|---|
| 2019 | 2020 | 2019 | 2020 | |||||
| Gross Income for Population | $38,600 | $39,900 | $40,400 | $42,800 | ||||
| Sources of Income | ||||||||
| Market Sources (%) | 80.0% | 74.7% | 86.6% | 81.2% | ||||
| Transfer Sources (%) | 20.0% | 25.3% | 13.4% | 18.8% | ||||
| Self-Reliance Ratio1 | 80.0% | 74.4% | 86.6% | 81.2% | ||||
| Average Incomes from Market (and Other Income) Sources | ||||||||
| Employment Income | $47,100 | $45,700 | $49,700 | $50,100 | ||||
| Investment Income | $5,900 | $6,100 | $11,00 | $10,200 | ||||
| RRSP Income (65 and older) | $10,000 | $10,400 | $11,600 | $11,800 | ||||
| Private Pension | $22,400 | $22,800 | $23,600 | $24,200 | ||||
| Other Income | $7,700 | $8,600 | $6,900 | $7,500 | ||||
| Average Incomes from Government Transfer Sources | ||||||||
| Old Age Security/Net Federal Supplements | $9,500 | $10,000 | $8,800 | $9,300 | ||||
| Canada Pension Plan | $6,600 | $6,700 | $7,700 | $7,900 | ||||
| Child Tax Benefit | $5,800 | $6,000 | $6,500 | $6,800 | ||||
| GST Credit | $400 | $800 | $400 | $800 | ||||
| Employment Insurance | $11,00 | $10,800 | $7,600 | $7,100 | ||||
| Workers' Compensation | $11,900 | $13,100 | $10,100 | $10,900 | ||||
| Income Support Assistance | $8,500 | $8,800 | $8,200 | $8,600 | ||||
| Provincial Tax Credits | $800 | $800 | $1,000 | $1,200 | ||||
| Other Government Transfers | $800 | $6,200 | $500 | $4,700 | ||||
1The self-reliance ratio is a measure of a population's dependency on government transfers such as: Canada Pension, Old Age Security, Employment Insurance, etc. A higher self-reliance ratio indicates a lower dependency.
Key Points:
- NL had a lower gross income compared to the Canadian average in both 2019 and 2020.
- Non-government transfer income sources are similar to Canada
- Compared to Canada, NL had a greater dependence on transfers for income in both 2019 (13.4% vs 20%) and 2020 (18.8% vs 25.3%).
- The primary transfer sources for NL are from old age security, employment insurance and workers compensation.
Source: Statistics Canada. Canada Customs and Revenue Agency summary information as provided by Income Statistics Division, and Statistics Canada. Census of population, 2019-2020 (data complied by Community Accounts based on custom tabulations; see https://www.communityaccounts.ca)
Market Basket Measure (MBM)
The market basket measure (MBM) is the official measure of poverty in Canada. The MBM is based on the cost of a specific basket of goods and services (including food, clothing, shelter, transportation and other necessities) representing a modest, basic standard of living.
Source: Statistics Canada. Table 11-10-0135-01 Low income statistics by age, sex, and economic family type; Canadian Income Survey (CIS), 2015-2022
Key Points:
- From 2015 to 2017, NL had a lower prevalence of low income compared to Canada. Since 2018, NL has had a higher prevalence.
- Overall, low income prevalence has decreased across Canada from 2015 to 2021 (but it did see an increase from 2020 to 2021).
- Low income prevalence in NL dropped from 13% in 2015 to 7% in 2020, but increased to 8.1% in 2021.
- NL ranked fourth among Canadian provinces in 2016 and sixth in 2021 (1=best and 10=worst).
- Low income prevalence was substantially lower for all provinces in 2020 likely due to a number of income supports introduced by the Government of Canada in response to the COVID-19 pandemic.
Newfoundland and Labrador Market Basket Measure (NLMBM)
The Newfoundland and Labrador MBM (NLMBM) is produced by the Newfoundland and Labrador Statistics Agency (NLSA) and has the same definition and similar methodology as the MBM but it uses income tax data, rather than survey data, to determine if households or families are in low income. It is based on all tax filers and as such provides a more complete picture of low income prevalence within NL. The MBM and NLMBM values for the province differ slightly for each year because of this distinction.
Source: Newfoundland and Labrador Market Basket Measure of Low Income. Statistics provided by Income Statistics Division, Statistics Canada, based on methodology developed by the Newfoundland and Labrador Statistics Agency (NLSA), 2014 to 2020 (see https://www.communityaccounts.ca).
Source: Newfoundland and Labrador Market Basket Measure of Low Income. Statistics provided by Income Statistics Division, Statistics Canada, based on methodology developed by the Newfoundland and Labrador Statistics Agency (NLSA) 2014 to 2020 (see https://www.communityaccounts.ca).
Key Points:
- While the proportion of low income individuals has decreased since 2015 based on both the MBM and NLMBM, the proportion of extreme low income individuals has largely remained unchanged.
- Individuals 65+ years are the least likely to experience low income
- Individuals <18 years are the most likely to experience low income.
- Lone parent families are at the highest risk of low income.
- Unattached individuals (non-family persons) are the most likely to experience extreme low income.
Protection from Income Shocks - Asset Resilience
This indicator measures an individual's level of financial security in the face of an economic shock such as job loss or an unexpected expense. Protection from income shocks is measured using the proportion of individuals who are asset resilient. Asset resilience refers to having enough savings to maintain well-being for three months.
Source: Statistics Canada. Table 45-10-0086-01 Difficulty meeting financial needs, by gender and province; Canadian Social Survey (CSS), Q3 2021 to Q4 2022
Key Points:
- Overall from 1999 to 2019, the percentage of persons who were asset resilient in NL increased (but it did see a decrease from 2016 to 2019) while the percentage in Canada remained fairly stable.
- The percentage of persons who were asset resilient has been consistently lower in NL compared to Canada. In 2019, the percentage of persons who were asset resilient was 22% lower in NL compared to Canada.
- NL ranked tenth among the Canadian provinces in both 1999 and 2019 for asset resiliency (1=best and 10=worst).
Financial Well-Being
Financial Well-Being is based on a household's own assessment of its ability to meet its financial needs in terms of transportation, housing, food, clothing, and other necessary expenses.
The financial well-being indicator captures the subjective (or perceived) financial well-being of Canadians, whereas the poverty indicator (MBM) is an objective measure based on whether a family's income falls below a specified poverty line.
Financial well-being was measured using the following question: "In the past 12 months, how difficult or easy was it for your household to meet its financial needs in terms of transportation, housing, food, clothing, and other necessary expenses?". The possible response categories included: very difficult, difficult, neither difficult nor easy, easy and very easy.
Source: Statistics Canada. Table 45-10-0086-01 Difficulty meeting financial needs, by gender and province; Canadian Social Survey (CSS), Q3 2021 to Q4 2022
Key Points:
- Overall, from Q3 2021 to Q4 2022, households in Canada have found it increasingly difficult to meet their financial needs.
- Households reporting difficulty meeting financial needs has risen by almost 120% in NL (87% for Canada) from Q3 2021 to Q4 2022.
- NL ranked fourth in Q3 2021 and tenth in Q4 2022 (1=best and 10=worst).
The Department of Children, Seniors and Social Development
The Department of Children, Seniors and Social Development supports individuals, families and communities in Newfoundland and Labrador in achieving improved health and social well-being and reduced poverty. The Department provides financial benefits and other services to eligible low income people to assist in meeting daily living expenses.
The NL Income Supplement and the NL Seniors' Benefit are refundable tax credits paid to low income individuals and families, person with disabilities and seniors. These benefits are based on net family income and are paid on a quarterly basis. The Guaranteed Income Supplement is a monthly payment available to low income Old Age Security Pensioners (65+ years).
Newfoundland and Labrador: Income Support Program (%), 2017 to 2022
| 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total Individuals | 40,295 | 39,935 | 38,940 | 36,075 | 33,045 | 33,725 | ||||||
| Income Support Benefit Prevalance | 7.8% | 7.8% | 7.6% | 7.1% | 6.5% | 6.6% | ||||||
| Total Annual Cases (Total families, includes unattached individuals) | 27,760 | 27,875 | 27,245 | 25,405 | 23,360 | 23,940 | ||||||
| Total Unattached Individuals | 20,220 | 20,645 | 20,325 | 19,120 | 17,685 | 18,215 | ||||||
| Children | ||||||||||||
| Families with Children | 5,730 | 5,525 | 5,450 | 5,015 | 4,565 | 4,655 | ||||||
| Total Children (< 18 years)> | 9,725 | 9,425 | 9,335 | 8,665 | 7,965 | 8,115 | ||||||
Key Points:
- From 2017 to 2022, the income support caseload in NL has decreased but the prevalence has remained fairly similar.
- Unattached individuals have consistently made up 73-76% of the caseload from 2017 to 2021 (total unattached individuals/total annual cases).
Source: Compiled by the Community Accounts Unit based on information provided by the provincial department of Children, Seniors and Social Development (CSSD), 2017 to 2021 (see https://www.communityaccounts.ca).
Government Benefits Provided to Those in Low Income, 2021 to 2022
| Benefit | Number Receiving Benefit | ||
|---|---|---|---|
| NL Income Supplement (March 2022) | 162,000 (Individuals and families) | ||
| NL Seniors' Benefit (March 2022) | 50,000 | ||
| Guaranteed Income Supplement (2021) | 54,440 |
Key Points:
- More than 30% of individuals and families in NL received the NL Income Supplement.
- More than 40% of seniors in NL received the NL Seniors' Benefit and even more received the Guaranteed income Supplement.
Source: Social and Economic Well-Being: What We Know, Department of Children, Seniors and Social Development (CSSD). 2021-2022
Quality of Care NL
Quality of Care NL is a is a campaign to implement the right treatment, for the right patient at the right time. Get more information at www.qualityofcarenl.ca
