The Daily — Canadian Income Survey, 2021 (2024)

Released:2023-05-02

The median after-tax income of Canadian families and unattached individuals was $68,400in2021— little change from2020. With the easing of economic shutdowns related to the COVID-19pandemic, market income increased in2021, led by a rebound in employment income and a reduced reliance on COVID-19 relief programs. Despite relatively stable after-tax income, Canada's official poverty rate increased by1.0percentage point to7.4% in2021, but remained well below the pre-pandemic poverty rate (10.3% in2019).

Market income growth in2021led by employment income

Although many sectors of the economy continued to be impacted by the pandemic in2021, the median market income of families and unattached individuals grew by7.3% to $61,700. This growth more than offset the decline observed in2020and brought the median market income3.5% higher than its2019level.

The largest component of market income is employment income, which represents about80% of the overall amount of market income received by Canadians. Among families and unattached individuals who received employment income, the median amount increased by5.2% to $68,700in2021. This increase in employment income erased losses experienced in2020and left the median3.8% above the pre-pandemic level in2019.

Government transfers decrease in2021

As pandemic-related labour market disruptions eased and employment incomes recovered from the drop in2020, median government transfers received by families and unattached individuals decreased from a high of $17,000in2020to $13,300in2021. However, this amount remains well above the2019pre-pandemic level of $8,500.

Total COVID-19 benefits received by Canadians dropped by68% in2021, and while these benefits represented28% of all government transfers in2020, this share decreased to11% in2021. On the other hand, both the amounts and number of recipients of Employment Insurance (EI) benefits increased in2021, as many of those affected by COVID-19 measures in2021were supported through EI, rather than through COVID-19 benefits, as in2020. However, increases in EI benefits only offset a portion of the decreases in COVID-19 benefits, which led to an overall decline in government transfers.

Median after-tax income holds steady in2021

The median after-tax income for Canadian families and unattached individuals was virtually unchanged in2021, at $68,400.

Among family types, the median after-tax income increased to $39,600(+6.7%) in2021from the previous year for unattached persons aged younger than65, and to $92,200(+2.7%) for non-senior couples. Median after-tax income was relatively unchanged for all other family types.

The poverty rate increases in2021, while remaining lower than the pre-pandemic level

According to the Market Basket Measure, Canada's Official Poverty Line,7.4% of the population, or approximately2.8million Canadians lived below the poverty line in2021, up from6.4% in2020. The increase in the poverty rate is partially attributable to a reduction in the number of people who received government transfers and the amount they received. However, despite the increase, the poverty rate in2021remained lower than the pre-pandemic level of10.3% in2019.

The poverty rate for seniors increased by2.5percentage points to5.6% in2021, close to the2019poverty rate (5.7%), mainly because of the decrease in COVID-19 benefits. Similarly, after a decrease from12.0% in2019to7.4% in2020, the poverty rate for unattached seniors increased to13.0% in2021. The poverty rate for children increased by1.7percentage points, from4.7% in2020to6.4% in2021.

Lone-parent families and unattached individuals are more vulnerable to poverty

The poverty rate for unattached individuals was21.9% in2021, almost five times the rate for persons in families (4.4%). In2019, prior to the pandemic, the poverty rate was26.9% for unattached individuals, while it was7.0% for persons in families.

In2021,16.1% of persons living in lone-parent families experienced poverty, and those in female lone-parent families (17.2%) were more likely to experience poverty than those in male lone-parent families (11.6%). In2019,22.0% of persons living in lone-parent families were living under the poverty line.

Indigenous people and racialized groups are more likely to experience poverty

Among Indigenous people aged16and older,13.9% were below the poverty line in2021, which was nearly double that of the corresponding non-Indigenous population (7.4%).

In2021, the poverty rate of those who belonged to racialized groups increased to9.5%, up1.5percentage points from2020. The2021poverty rates for the three largest racialized groups in Canada were7.0% for South Asian Canadians,11.7% for Chinese Canadians and11.5% for Black Canadians.

Persons with a disability are also at a higher risk of poverty

Historically, persons with a disability have been more likely to live below the poverty line. In2021, approximately979,000(10.6%) of persons aged16and older with a disability lived below the poverty line. This was a2.1percentage point increase from the2020poverty rate of8.5%, but3.1percentage points less than the2019pre-pandemic rate of13.7%.

Low-income measure increases in2021, while remaining lower than the pre-pandemic level

Statistics Canada also reports low income based on the low-income measure. The low-income rate in Canada increased from9.3% in2020to10.6% in2021. Although the low-income rate increased in2021, it was still the second-lowest rate in Canada since1989.

Food insecurity increases

The impacts of the COVID-19 pandemic are still being felt today and expand further than income. In2021,18.4% of Canadians, or6.9million people lived in households that experienced marginal, moderate or severe food insecurity, up from15.7%, or5.8million people in2020.

Families with children were more likely to experience food insecurity. Specifically,42.6% of people living in female lone-parent families and21.1% of people living in couple families with children experienced food insecurity in2021. Likewise, increases in food insecurity in2021mainly affected families with children. Of the1.1million more people in food insecurity in2021,802,000were in families with children.

Looking at2022

In2022, Canadians were faced with rapidly increasing costs of living, driven by increased shelter and food costs. At the same time, disposable income grew at a slower-than-average pace for the lowest quintile in2022, according to National accounts estimates. Rising costs combined with a slow growth rate in income suggests that some families could fall behind.

As described in Market Basket Measure poverty thresholds and provisional poverty trends for2021and2022, the changes observed in the annual Consumer Price Index and disposable income suggest that the poverty rate will increase in2022to a level approaching the pre-pandemic mark of10.3%. The official poverty rate for2022will be available in early2024.

Products

Two new tables including data by visible minority group, Indigenous group and immigration status are now available: Average and median market, total and after-tax income of individuals by selected demographic characteristics and Poverty and low-income statistics by selected demographic characteristics.

Contact information

For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).