The much less prosperous are nonetheless poorer in Canada

After 10 straight years of progress, the median after-tax earnings for Canadian households fell to $59,300 in 2021, down $1,730 from 2020, or 2.8%.

Nonetheless, analyzing the Statistics Canada information, I discovered that “solely” the poorest households are affected by this decline, particularly the 8.7 million Canadian households whose after-tax earnings is under the median (which incorporates the 17.4 million Canadian shares). households into two equal components).

For these low-income Canadian households, after-tax household earnings fell by US$2,307 (-6.9%) in 2021, from a median earnings of US$33,516 (2020) to simply US$31,209 (2021).

In the meantime, Canada’s 8.7 million households with above-average after-tax incomes could have nearly the identical household earnings in 2021 as they did in 2020, a median earnings of $122,572.

federal cups

Is it so stunning that much less prosperous households should endure such a drop of their common after-tax earnings in 2021? Completely not!

For what? As a result of in 2021, the Justin Trudeau administration drastically minimize very beneficiant monetary support applications designed to assist Canadians financially in the course of the paralysis of Canada’s economic system in the course of the COVID-19 pandemic in 2020. I’m referring particularly to the CERB (Canadian Emergency Response Profit). ), CESB (Canadian Emergency Pupil Profit), PCRE (Canadian Financial Restoration Profit), and so forth.

The discount in these federal monetary help applications associated to COVID-19 is estimated at roughly $50 billion.

In 2020, households within the below-average earnings bracket obtained a median of $17,303 per family in federal transfers. In 2021, these transfers have fallen to $14,797 per family, a $2,506 discount. This discount may solely be partially offset by a rise in labor earnings.

For his or her half, households with above-median incomes averaged $18,271 per family in authorities advantages in 2020, which by the way is almost $1,000 greater than the much less prosperous group. In 2021, these higher-income households noticed federal advantages drop from $3,891 per family to $14,380. Nonetheless, this minimize was offset by a rise in labor earnings.


No province was spared. 2021 noticed declines in median after-tax household earnings from coast to coast.

Right here in Quebec, the decline was weakest at round 1.3%. Our median after-tax household earnings has thus decreased by $710, from $55,410 in 2020 to $54,700 in 2021.

The most important decreases have been in Ontario (-$2,380/-3.8%), Manitoba (-$2,860/-4.9%), Saskatchewan (-$2,830/-4.4%), Alberta (-$2,350/- 3.3%).

After all, we understood that, as in Canada as an entire, it’s the much less prosperous households in every province which can be bearing the brunt of the decline.

Nonetheless, for a direct comparability, Statistics Canada’s calculations of common after-tax earnings are based mostly on fixed 2021 US {dollars} for every of the 11 years from 2010 to 2021.

The extraordinary yr 2020

Together with his plethora of economic help applications in the course of the pandemic, Justin Trudeau has artificially inflated family incomes in 2020 towards his will.

Actually, the rattling yr of the COVID-19 pandemic was notably notable for a pointy improve in median household earnings in comparison with 2019.

The vary of allowances and advantages supplied by the Trudeau administration in 2020 to assist handle the financial disaster in the course of the COVID-19 pandemic proved so beneficiant that it had a tangible influence, elevating median after-tax household earnings by about $4,130. Greenback elevated 7.3%.

In Quebec, our median after-tax household earnings elevated 6.6% in 2020, from $3,430 to $55,410.

Ontario was forward of us, up $4,610, and even 7.9%. Their median household earnings reached $63,330 in 2020.

In 2020, at that stage, Quebec residents noticed a 12.5% ​​decline from Ontario residents, with the hole in stated median after-tax earnings being $7,920.

As a comfort, the hole in query narrowed to $6,250 (10.3%) in 2021, because the decline in median earnings in Quebec was much less pronounced than in Ontario.

Les eaux seront plus agitees pour le Canadien lan prochain