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Median-family income continues ascent: StatsCan

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Date: Monday May. 5, 2008 12:54 PM ET

Between 1980 and 2005, median-income Canadian families saw an 11.1 per cent increase in the amount of money they earned, according to new data from Statistics Canada.

The increase is calculated based on gross income and was attributed to strong growth in the economy and gains in employment, according to a report on StatsCan's Survey of Labour and Income Dynamics.

The data shows that the median income for families, when calculated after taxes, has also gone up in more recent years.

Median income in 2006, after taxes, was $58,300 -- an increase of 2.1 per cent from the previous year.

It was the third year in a row that the median has gone up, and was attributed to gains in market income and government transfers.

Other family types also saw gains in their median, after-tax income from 2005.

  • Senior families (as defined as families in which the primary income earner is 65 or older): $42,400, up 2.9 per cent
  • Working-aged families: $62,000, up 1.8 per cent
  •  Unattached individuals: $22,800, up 4.6 per cent

When the numbers were broken down by province, the median after-tax income for families in Alberta was far ahead of families in the rest of the country. It was the third consecutive year that rate has increased.

  • Alberta families had a median income of $70,500 in 2006.
  • Ontario families followed at $62,400, then British Columbia at $60,300.

The data shows that government transfers played a key role in some of the more significant changes.

Two-parent families with kids saw an increase of $2,800 in government transfers in 2005, to $3,300 in 2006, due largely to changes to the Universal Child Care Benefit.

And for single individuals, transfers went from $500 to $600.

"According to the Survey of Labour and Income Dynamics, an estimated $78.2 billion was transferred to families in 2006, up 5.9 per cent from 2005. An estimated $25.3 billion was distributed to people living alone, up 2.8 per cent," the report states.

But government transfers to senior families -- which make up the largest portion of family types -- remained unchanged at $22,600.

The percentage of Canadian families living below the low-income cutoff remained unchanged at seven per cent, or 633,000 families.

On average, those families were $7,000 below the low-income cutoff. One year earlier in 2005, the average was $8,000.

About 2.3 per cent of senior families were below the low-income cutoff. About 29 per cent of single Canadians lived below the low-income threshold.

Comments are now closed for this story

Lart from Above
said

The article should make clear that the report shows change in income in constant dollars, i.e. this shows the increase in income above the increase in the cost of living. It should also make clear that "median" refers to the statistical median, i.e. the middle class, so it is not skewed by whatever increase the top earners happen to get. (Median is a better statistical measure exactly because it does not overstate the importance of values at the extremes.) This also refers to the family income (usually two earners), not just individual salaries.

It will be interesting to see how the trend changes in a couple of years, once we have data from Harper's recession.


Steve in Fredericton
said

Nothwithstanding the fact that these statistics are heavily manipulated to reflect the desired messege, we are still looking at a 25 year period of time in which the income only grew 11%. How much was gasoline at the pumps in 1980 compared to today. I bet it's increased more than 11%. What this all means... the rich are getting richer (and there are fewer of them) and the rest of us are taking it up the back passage. I believe Bolshevic Russia had a social problem much like this in the early part of the 20th century. Hmmm...


ken g
said

It should rise, more families have both parents working. Who is looking after the kids, or even having kids?


Stats Prof
said

StatsCan is deliberately misleading us -- likely under orders from the higher-ups (the government).

What does info about the median tell you? NOT MUCH. Most Canadians aren't statisticians -- & how many would know that very very very VERY FEW Canadians are right at the median?

The median is but ONE income level among millions. If you have an HOUR, I'll explain it REAL simple! ...


Steve G
said

The first thing that crossed my mind while looking at these statistics is the median family incomes shown for Alta, Ont and BC would have a very difficult time covering the cost of a mortgage on an average priced home in each of those provinces.

The housing bubble is ready to pop.


fred marcos
said

The amount of income you make is directly proportional to your paid goods produced and services rendered.

In short low income indicates low productivity Stats do not matter.


carl
said

how come my after tax income was $105,000.00 and I'm living paycheck to paycheck?


BGD
said

Ya hoo, 11.1% more in my pocket. Boo hoo, the cost of an average one bedroom condo went up twice as much.


Jack
said

Show us how the heck this is calculated because I for one am seeing a lot less, not more!!!


Tara
said

The increase in the median income in Canada has not kept up with the increase in the cost of things like gas, utilities, food and clothing. So, what this says to me is we are poorer than we were in 1980.


MM
said

Ok Old Sage - tell me where I'm supposed to find "money to invest wisely". After mortgage, food, insurance, car payment (on a second hand beater), etc. etc. - who has money to "invest"?!!! We barely make ends meet and pray to God one of us doesn't get sick or hurt or layed off! We're in our late 40's with no hope for advancement. Not sure what our kids' futures will hold and not sure how to counsel them so things will be better for them - but "invest wisely" is a joke in most households.


Feeling The Pinch
said

Our household income is well over double the median yet I find it tight. However, I had far more disposable income fifteen years ago when I graduated from university than I do now. Divorce, fuel costs, TAXES, three kids to raise.... Maybe the Mennonites are on to something.


M
said

To PP,
I never was able to totally grasp the actual calculation for the cost of living to start with. All I know is that I have been working for nearly 26 years and haven't seen an increase for at least the last 10 years! Yet I see an increase in gas, groceries, clothing and sports for my boys!


Joe
said

The cost of living in this time period has come close to doubling and the "median" income after taxes is artificially inflated by the top 10% of earners in the country. In short, the rich is getting richer, and the rest of us are getting poorer.


too many stats
said

Last week the report the rich get richer and poor.... you know the song.
The middle class is stagnating.
This week we are richer.
What happened?


pp
said

OK - so the median income rose 11.1%

BUT what about the cost of living over that time period - how much did it rise? I bet it was more than 11.1%!!!

Can anyone tell me those stats? how much did the cost of living for these supposed median-income familey go up between 1980 - 2005??


RR
said

Median income in 2006, after taxes, was $58,300. Who are these people ? I know it's not me. If they have a bit they can spare I could use it to bring my salary up to these standings.


Advice from an old sage
said

Love the old adage: Figures lie and liars figure...

Are we expected to feel better because when the numbers are aligned in a certain manner they suggest we have more income and therefore should feel good?

I've never had less earned income in my life yet my net assets are increasing through wise investments in resource stocks.

It's not what you have which is important but what you do with it. When you apply taxes, and debt interest to most incomes,the result is people are throwing money out the window through mismanagement. Pay less taxes (through sound investment planning) and forsake the wannabe stuff, forgo the Bimmer, buy a Honda and stay out of debt.



Roger T
said

What does it matter if families have more money in their pockets due to the rising loonie when retailers are not dropping their prices. IT'S NOT GONNA MAKE A DIFFERENCE IN THEIR SPENDING HABITS WITH THE CURRENT STATE OF THE ECONOMY. NO PRICE DROPS MEANS NO SHOPPING TO COUNTER BALANCE CORPORATE GREED.

SAVINGS COMES BEFORE THE ECONOMY!


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