Social Determinants of Health – Income
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. This page is best viewed in full screen on a computer. 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.
- From 2019 to 2021, NL had a lower gross income compared Canada.
- Compared to Canada, NL has a greater dependence on income from government transfers (20% vs 13.4% in 2019; 25.4% vs 18.8% in 2020; 22.8% vs 15.5% in 2021).
- From 2019 to 2021, average incomes from market sources were lower in NL compared to Canada (with the exception of the ‘Other Income’ category).
- The government transfer sources providing the highest average incomes for NL and Canada were old age security, employment insurance and workers compensation, all of which were higher in NL compared to Canada.
Income Information: NL
- In NL, the main source of market income was employment income and it accounted for 83.5% in 2021.
- In 2021, employment insurance, old age security/net federal supplements and workers compensation made up close to 80% of the government transfer income for persons in NL.
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.
- From 2015 to 2017, NL had a lower prevalence of low income compared to Canada. Since 2018, NL has had a higher prevalence until 2022.
- Overall, low income prevalence has decreased across Canada from 2015 to 2022 (but it has been increasing again since 2020).
- Low income prevalence in NL dropped from 13% in 2015 to 7% in 2020, but increased to 9.8% by 2022.
- NL ranked fourth among Canadian provinces in 2017 and third in 2022 (tied with PE) (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 & 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.
- 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 and older 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.
- Overall from 1999 to 2023, 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 with a slight increase in 2023.
- The percentage of persons who were asset resilient has been consistently lower in NL compared to Canada. In 2023, the percentage of persons who were asset resilient was 15% lower in NL compared to Canada.
- NL ranked eighth among the Canadian provinces in both 2012 and 2023 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.
- Overall, from Q3 2021 to Q3 2023, households in Canada have found it increasingly difficult to meet their financial needs.
- Households reporting difficulty meeting financial needs has risen by almost 80% in both NL and Canada.
- NL ranked fourth in both Q3 2021 and Q3 2023 (1=best and 10=worst).
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).
- From 2017 to 2021, the income support caseload in NL decreased. From 2022 onwards, the caseload increased but the prevalence remained fairly similar.
- Unattached individuals have consistently made up 73-76% of the caseload from 2017 to 2023 (total unattached individuals/total annual cases).
- 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.
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