Research summary: Workers living in poverty

Title of the report: Who are the workers living in poverty in Canada?

Author of the report: Hélène Roberge

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Why this study

Individuals who live in poverty despite active participation in the labour market are a group of interest for the Government of Canada. These individuals are workers:

• salaried or self-employed, or both at the same time
• aged 18 to 64, and
• having accumulated at least 910 hours of paid work during the year

They represent 5% of the population of workers with 910 hours worked or more and nearly 40% of the population living in poverty. It is important to know the characteristics of individuals who make a significant work effort but who remain in poverty.

What we did

Using the 2019 Canadian Income Survey (CIS), we compare workers living below the poverty line to workers who do not live in this situation. The analyses thus make it possible to determine what differentiates the two types of workers. We study in particular:

• sociodemographic characteristics (age, gender, place of residence, etc.)
• socioeconomic characteristics (number of hours worked, employment income, total income, etc.), and     
• factors associated with the risk of being a worker living in poverty

A multivariate analysis confirmed the results of the descriptive analysis. It also estimated the strength of association of the various factors.

What we found

The results show that certain factors increase the risk of being a worker and living in poverty, such as:

• being self-employed
• living alone, and
• working in certain sectors of the economy such as:
  • accommodation
  • food services, and
  • recreation

The results also show that government transfers account for 26% of the total income of workers living in poverty. Furthermore, only 58% of these workers benefited from the Canada Workers Benefit.

What it means

The results show that in 2019, 5% of the population that actively participated in the labour market, by providing more than 910 hours of work, still remained below the poverty line. Several characteristics differentiate them from other workers. These differences can serve as a basis for the development of programs for sub-groups of the population such as:

• self-employed workers
• youth aged 18 to 34, and
• people living alone

The results also raises a question about the fact that only 58% of workers living in poverty benefited from the Canada Workers Benefit.

Contact us

Strategic and Service Policy Branch, Social Policy Directorate, Social Research Division

Email: esdc.nc.sspb.research-recherche.dgpss.cn.edsc@hrsdc-rhdcc.gc.ca