Home | Research | DED |CVD |ECD | EMD | HPD | LCD | LSD | TUD | Disclaimer | Copyright JUNE 2009 - REPORT HIGHLIGHTS - Living Standards Domain [LSD] - Highlights ANDREW SHARPE AND JEAN-FRANÇOIS ARSENAULT Centre for the Study of Living Standards (CSLS) Bg LIVING STANDARDS DOMAIN [LSD] - 9 WELLBEING INDICATORS 1 Income distribution 2 Incidence of low income, 3 Wealth distribution 4 CSLS Economic Security Index 5 Long-term unemployment 6 Employment rate 7 CIBC Employment Quality Index 8 Housing suitability and affordability 9 After-tax median income C HIGHLIGHTS (8) - Living Standards Domain [LSD] a Not all Growth was Equal b Many of us Made More Money – in Part because we Worked Longer Hours c We were Wealthier on Average d Inequality Increased – the Rich Got Richer e The Poor Stayed Poor f Labour Market Conditions Improved – But ...... g Key Social Programs Provided Less Support forWorking-Age People h Impact of the Recession The following are the key highlights of the report: a Not all Growth was Equal 1 Between 1981 and 2008 real GDP per capita grew by a total of 52.6%. 2 Personal Income per capita grew by only 36.5% and personal disposable income per capita grew by 28.8%. 3 Labour productivity increased at an average annual rate of 1.3% between 1981 and 2008, but real hourly wages grew much more slowly at an average rate of only 0.8% per year. 4 In 1981, profits represented 11.3% of GDP. By 2008, the share had risen to 14.5%. b Many of us Made More Money – in Part because we Worked Longer Hours 1 Between 1981 and 2008, real pre-tax personal income per capita rose 36.5%, and after-tax per capita income rose 28.8%. 2 Real pre-tax income per household increased 14.1% and after-tax real income per household rose 11.7% per cent. 3 Part of the increase in real income was the result of an increase in hours worked, with the average annual hours worked per person of working age rose 2.9% over the same period. 4 The proportion of workers working 50 hours or more increased 0.8 of a percentage point, from 12.1% in 1981 to 12.9% in 2008. 5 The biggest increase was for workers aged 55 to 64, from 10.5% in 1981 to 11.8% in 2008. c We were Wealthier on Average 1 Average real net worth in 2007 was up 73.3% on a per capita basis and 51.7% on a household basis from 1981. Net Worth per family unit Source : Based on national balance sheet accounts and the Consumer Price Index d Inequality Increased – the Rich Got Richer 1 The after-tax income of the top 20% of households rose 38.7%, from 1981 to 2007 while the increases for all other income groups were between 21% and 26%. Canadian After-tax income 2007 Source: Based on Survey of Consumer Finances (SCF) and Survey of Labour and Income Dynamics (SLID) estimates e The Poor Stayed Poor 1 There was little progress in the fight on poverty. 2 The poverty rate for all persons was 9.2% in 2007, down from 11.6% in 1981. 3 The poverty gap – the amount of money by which the average poor family fell short of the poverty line – was the same in 2007 ($6,700) as it was in 1981. Low income gap (right axis) Source: Based on Survey of Consumer Finances (SCF) and Survey of Labour and Income Dynamics (SLID) estimates f Labour Market Conditions Improved 1 But the Proportion of Long-term Unemployed was up and Job Quality was down 2 The unemployment rate was lower in 2008 (6.1%) than in 1981(7.6%) but the proportion of long-term unemployed – those unemployed more than 52 weeks – was higher in 2008 (6.7%) than in 1981(5.7%). 3 Job quality, as measured by the CIBC Job Quality Index, was on a more or less steady downward course, falling 11.3% from 1988 to 2008. 4 The most important development was the increased employment rate, that is, the ratio of the employed to the working age population. 5 This rate reached 63.6% in 2008, up from 60.1% in 1981 due to the increased participation of women in the labour force. Employment Rate Source: Statistics Canada Labour Force Survey g Key Social Programs Provided Less Support forWorking-Age People 1 Welfare benefits in real terms were significantly lower for all four types of welfare recipients in 2007 than in 1986. 2 Employment Insurance in 2008 was less generous in terms of required qualification period, coverage, and duration of benefits, than in 1981. 3 These developments likely contributed to the increase in income inequality. 4 On the other hand, the introduction of the child tax credit and the National Child Benefits Supplement in the mid-1990s, the only major new social program established since the 1970s, provided additional income to poor working families and lowered the poverty rate for this group somewhat. 5 Equally, the national minimum wage in 2008 represented 42% of the average industrial wage, up from 35% in 1983 although all of the increase took place before 1995. h Impact of the Recession 1 As with all CIW domains, the Living Standards domain tracks changes over a period of time, in this case 1981-2008. 2 Unlike the other domains, however, the situation changed very quickly and very dramatically in the second half of 2008 and first quarter of 2009. 3 To report on this, the Institute commissioned a special study examining the initial impact of the recession on the living standards of Canadians. 4 The results of the special study are not reflected in this report, but will be available online at www.ciw.ca. A Summary (2) - Living Standards Domain [LSD] B Trends (7) - Living Standards Domain [LSD] C Highlights (8) - Living Standards Domain [LSD] - THIS WEB-PAGE R THE CANADIAN INDEX OF WELLBEING NETWORK a Based in the Faculty of Applied Health Sciences at the University of Waterloo, the Canadian Index of Wellbeing Network is an independent, non-partisan group of national and international leaders, researchers, organizations, and grassroots Canadians. b Its mission is to report on wellbeing at the national level and promote a dialogue on how to improve it through evidence-based policies that are responsive to the needs and values of Canadians. c The Network’s signature product is the Canadian Index of Wellbeing (CIW). d The CIW measures Canada’s wellbeing and tracks progress in eight interconnected categories. e It allows us, as Canadians, to see if we are better off or worse off than we used to be - and why. f It helps identify what we need to change to achieve a better outcome and to leave the world a better place for the generations that follow. The Honourable Roy J. Romanow, Chair The Honourable Monique Bégin, Deputy Chair University of Waterloo, 200 University Avenue West, Waterloo, ON, Canada N2L 3G1 519-888-4567, ext. 31235 | ciwinfo@uwaterloo.ca | http://www.ciw.ca Home | Research | DED |CVD |ECD | EMD | HPD | LCD | LSD | TUD | Disclaimer | Copyright
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