Prince Edward County, Ontario, Canada.
Updated November 29, 2023
Income Indicator | PEC 2016 | PEC 20/21 | Ontario 20/21 | Comments |
---|---|---|---|---|
median after-tax income of households | $ 59,259 | $ 72,000 | $ 79,500 | PEC's household income historically lags behind the province. |
prevalence of low income (%) (defined as less than 50% median after-tax household income) | 13.5 | 10.1 | 10.1 | Income of less than $36,400/year. See the Stats Canada alert below regarding 20/21 income data |
income dependency on govt transfers (%) | 16.7 | 19.9 | 17.1 | Over a third of PEC’s population is age 65+ and eligible for Old Age Security benefit (OAS). |
worked full year, full time (%) | 28.5 | 27.3 | 33.8 | |
worked part year and/or part time (%) | 30.2 | 25.6 | 28.3 | PEC's economy relies heavily on the seasonal tourism and agriculture sectors |
class of worker: employee (%) | 78.6 | 73.2 | 82.6 | |
class of worker: self-employed (%) | 20.3 | 25.5 | 14.6 | PEC has high rates of self-employment, and an entrepreneurial spirit. |
worked at home (%) | 13.2 | 27.6 | 29.7 | The pandemic accelerated the rate of people working remotely. |
(Prince Edward County 2016 Census Profile) (Prince Edward County 2021 Census Profile) (Statistics Canada Business Counts June 2022, custom calculation)
Statistics Canada has warned that these 2020 census data are complicated due to employment income dropping and being compensated for by government employment supports, stating “benefits from COVID-19 income support programs offset losses in employment income”.
Income gap compared to Ontario
While the median after-tax income of PEC households increased 21.5% ($12,741) between 2016 and 2020, PEC fell further behind the median provincial income. The income gap is now $7,500/year, up from $6,026 in 2016.
18.5% of PEC workers are employed in food services, accommodation and retail sales – sectors with the lowest average weekly earnings. See industry composition.
In 2020, 10.1% are living on low income (based on the After-Tax Low-Income Measure (LIM-AT). That equates to 2,545 people including.
This a decrease from 13.5% of residents in 2015, while the provincial average decreased from 14.4% to 10.1%. However, 2020 census data are complicated due to COVID-19 income support programs.
Living in low income diminishes sufficient financial resources to afford adequate food, shelter, clothing, transportation and other necessities of economic and social well-being. See poverty reduction.
Declining affordability
Adding to the financial burden of low-income earners is the highest level of inflation in 35 years. This is taking a toll on affordability.
54% of Ontarions report being $200 away from being unable to cover their bills and obligations.
High dependence on government transfers
PEC’s income dependence on government transfers increased from 16.7% to 19.9%, of which 3.9% were COVID-19 Government income support and benefits. Ontario’s income dependence on government transfers increased from 11.1% to 17.1%, of which 5.5% were COVID-19 Government income support and benefits. PEC’s lower takeup of COVID-19 supports compared to the province may account for some of the widened income gap over this period.
In addition, over a third of PEC’s population is age 65+ and eligible for the Old Age Security benefit (OAS).
As of March 31, 2023, 1200 PEC households rely on income from the ODSP Ontario Disability Support Program (Ministry of Children, Community and Social Services) and 234 households rely on Ontario Works (PELA Social Services). Income from these programs is well below the poverty line.
Dependency on Social Assistance income as of March 31, 2023:
Adults | Children | Total | |
---|---|---|---|
Ontario Works | 253 | 160 | 413 people |
234 households | |||
ODSP | 1200 households | ||
1434 people |
Economic Dependency: PEC ranks 5/5 = most deprived
Economic dependency relates to dependence on sources of income other than employment income. For example, the indicators included in this dimension measure concepts such as the proportion of the population aged 65 and older, the dependency ratio (the population aged 0-14 and population aged 65 and older divided by the population aged 15-64), and the proportion of the population not participating in the labour force.
Ontario Marginalization Index 2016 map showing areas of economic dependency.
Key: Darkest brown = 5/5, Medium brown = 4/5, Light brown = 3/5, Yellow= 2/5
The living wage for Ontario East is $20.60 (Nov 6/23). Ontario’s minimum wage (Oct. 1/23) at $16.55 per hour is only 80% of the living wage.
The Ontario Living Wage Network (OLWN) reports that a living wage is calculated “based on the needs of a family of four” with two adults each working full-time. It calculates how much a family would need to “cover their basic expenses and participate in their community.”
The County of Prince Edward (municipality) is a certified living wage employer. Living Wage Employers recognize that paying a living wage constitutes a critical investment in the long-term prosperity of the economy by fostering a dedicated, skilled and healthy workforce.
(Canada, Towards a Poverty Reduction Strategy – Discussion Paper)
Impact of the Covid-19 pandemic
People who lived close to or at the poverty line prior to the pandemic suffered the most during this crisis.
Going into COVID-19, many families had limited financial reserves to rely upon in the event of an economic crisis. About one in four families did not have enough savings to avoid falling into poverty when faced with a two-month work stoppage. (Statistics Canada, “The Social and Economic Impacts of COVID-19” Sept. 2020, p. 51)
Growing income gap
The pandemic deepened societal inequalities, widening the gap between those who are doing well and those who are not. Low-income workers are being driven further into poverty and insecurity. Many low-wage jobs were lost while high-wage jobs surged.
“Inequality makes for unhealthier societies. Life expectancy, literacy, infant mortality, imprisonment, murder rates, obesity, teen birthrates, mental illness (including addiction), social mobility, trust — all get worse across the entire income spectrum when the gap between rich and poor widens.”
Richard Wilkinson, Public Health Researcher
A Canadian Imperial Bank of Commerce report states that the jobs lost in 2020 were primarily among workers who earned below-average wages, while high-wage earners gained almost 350,000 jobs. (Benjamin Tal, “Canadian Labour Market Dichotomy — Deeper Than Perceived,” CIBC Economics, 19 Jan. 2021, p. 3
Additionally, Canadian households built up $160 billion in savings during the first three-quarters of 2020. This is due to a large increase in government support and a decline in spending. While one-in five (18%) Canadians are better off, nearly two-in-five (39%) are worse off, according to the 2020 BDO Affordability Index. (BDO Debt Solutions, “BDO Affordability Index 2020: COVID-19 intensifies economic disparity in Canada”)
Inequities
Higher numbers indicate higher inequality, a greater gap between the incomes of the richest and poorest people.
The Gini index / Gini coefficient is a common measure of income inequality that indicates how equally income is distributed for a given population.
Prince Edward County has greater inequality in adjusted household after-tax income than either Ontario or Canada.
The higher the Gini coefficient, the greater the gap between the incomes of the richest and poorest people. High levels of income inequality can have several undesirable political and economic impacts. These include slower economic growth, reduced income mobility, greater household debt, political polarization, and higher poverty rates.
Also see …
Key economic assets and challenges. Achieving greater job…
Income indicators, trends, low income, dependence on government…
Workforce; employment opportunities; labour shortages; unemployment and labour…
Empowerment and capacity-building initiatives in Prince Edward County…
THRIVE PEC is a community-led development of a…
Economy: Advancing well-being together
Sign in to your account