Household income in Canada: Key results from the 2016 Census

Released: 2017-09-13 Statistics Canada 

The median total income of Canadian households rose from $63,457 in 2005 to $70,336 in 2015, a 10.8% increase.

Today, Statistics Canada is releasing data from the 2016 Census on the incomes of Canadians. This release presents incomes of Canadians as measured in 2015, and looks at trends over the 2005-to-2015 period, a decade of significant income growth and economic change.

An important factor in the economic story of Canada over the decade was high resource prices that drew investment and people to Alberta, Saskatchewan and Newfoundland and Labrador, boosted the construction sector, and more generally filtered through the economy as a whole.

This boom in the resource sector coincided with a decline in the manufacturing sector, with fewer jobs in this sector in 2015 than 2005. The bulk of these manufacturing job losses were in Ontario and Quebec.

This census release paints a picture of the income of Canadians in 2015 before the effects of the oil price slowdown in 2015 and 2016 were fully felt.

Led by growth in resource-rich provinces, median income rose 10.8% in Canada from 2005 to 2015, compared with 9.2% growth in the previous decade and a decline of 1.8% the decade before that.

This growth was not distributed evenly across Canada. Resource-based provinces and regions had the highest income growth, led by Nunavut, and Saskatchewan. Median income growth was slowest in Ontario and Quebec, the two provinces with the largest populations and significant manufacturing activity.

The low income rate was relatively stable over the last decade, rising marginally from 14.0% in 2005 to 14.2% in 2015. There were regional variations over the decade. The number of persons in low income declined in Saskatchewan and Newfoundland and Labrador, while the number increased in Ontario. There were also variations across age groups with a smaller proportion of young children living in households with low income and a larger proportion of seniors.

Almost two-thirds of Canadian households contributed to an RRSP, RPP or TFSA in 2015. Of these households, more than half contributed to only one plan, while one-third contributed to two plans and 14% contributed to all three.

In 2015, 96% of Canadian couples had both spouses reporting income, up significantly from about two-thirds in the mid-1970s.

One-third of couples had fairly equal incomes in 2015 compared with about one-fifth of couples 30 years earlier.

Provincial median income growth reflects employment trends in resources and manufacturing

According to the Labour Force Survey, two industrial sectors experienced declines in employment from 2005 to 2015: manufacturing (-22%) and agriculture (-14%). Over the same period, employment in the health care sector rose over 30% as did employment in construction and the professional, scientific and technical services sector, sectors associated with economic expansion. These changes in the economy are reflected in changes to median household income.

Nunavut (+36.7%) and Saskatchewan (+36.5%) had the highest growth in median incomes over the past decade. Newfoundland and Labrador, the Northwest Territories, Alberta, and Manitoba also saw median incomes grow by more than 20% over the decade.

The decline in manufacturing jobs in Quebec and Ontario was reflected in the lower growth of median incomes in those two provinces. Quebec (+8.9%) and Ontario (+3.8%) were the provinces with the lowest growth rates.

The metropolitan areas within these regions also tended to follow these provincial/territorial patterns. For example, almost every metropolitan area in Ontario saw income growth below the national average, while almost every metropolitan area on the Prairies had income growth above the national average.

The following sections look at regions across the country and provide further detail on the growth in median household income for provinces and metropolitan areas.

Prairie provinces boom

Earlier results from the 2016 Census show that the population is moving west. While economic opportunities in the West underlie this trend, median income growth does not necessarily follow the growth in the number of households and in the West was more related to developments in the resource (oil) and construction sectors.

Over the decade, the Prairie provinces had the highest growth in both the number of households and household median income in Canada. Even within the Prairie provinces, however, there were differences. For example, the growth in the number of households was faster in Alberta (+21.6%) than Saskatchewan (+11.7%), yet the median income growth in Saskatchewan outpaced that of Alberta.

The median household income in Manitoba was $68,147 in 2015, ranking eighth among the provinces and territories. Despite a 20.3% increase in median income since 2005, roughly twice the national growth rate, Manitoba slipped one rank from seventh in 2005 because other regions had even stronger growth.

Winkler (+24.2%) and Brandon (+23.3%) had the highest median income growth among the metropolitan areas in Manitoba. The income growth was slower in Steinbach (+16.6%), despite having the fastest growth in the number of households at 41.8%. In Winnipeg, the largest city in Manitoba, median incomes grew 16.6%, somewhat below the provincial growth rate.

Saskatchewan (+36.5%) had the highest median income growth among the provinces, and was second highest nationally following Nunavut (+36.7%). On the strength of this income growth, Saskatchewan improved its provincial/territorial ranking from eighth to fifth over the decade.

Although Moose Jaw (+26.4%) had the slowest income growth among Saskatchewan metropolitan areas, it was faster than all but 17 of the 152 metropolitan areas in Canada. Saskatchewan was also home to the metropolitan area with the highest growth in median income in Canada (Yorkton), up 40.5% from 2005. The number of households in Moose Jaw and Yorkton grew by about 6.5% over this period—among the slowest growing metropolitan areas in Saskatchewan.

Alberta ($93,835) had the third-highest median income among the provinces and territories in 2015, down from second place in 2005. Alberta was the fifth-fastest growing province/territory in Canada at 24.0%.

Within Alberta, median total income rose the fastest in 

Wood Buffalo (35.2%),  

Camrose (+29.9%), 

Wetaskiwin (+27.3%), 

Okotoks (+27.0%), 

Edmonton (+26.6%), 

Cold Lake (+23.0%) 

Calgary (+22.7%). 

While Sylvan Lake had the slowest growth in median incomes of any Alberta metropolitan area (+7.8%), it had the second-largest increase in the number of households (+50.5%).

Atlantic provinces and Quebec had the lowest median incomes

The Atlantic provinces and Quebec had the lowest median incomes in Canada in both 2005 and 2015. However, investments in the resource sector during this time led to higher incomes in Newfoundland and Labrador (+28.9%), resulting in the third-fastest income growth among the provinces and territories. This increase lifted Newfoundland and Labrador from the lowest median income in the Atlantic/Quebec region to the highest over the course of 10 years.

Every metropolitan area in Newfoundland and Labrador posted income growth above 12% over the decade. The growth was highest in Bay Roberts (+33.1%) and St. John's (+27.5%), followed by Corner Brook (+15.7%), Grand Falls-Windsor (+14.5%), and Gander (+12.4%). Among metropolitan areas in the rest of Atlantic Canada, only the median income in Miramichi, New Brunswick (+14.3%), grew at a faster pace than the slowest-growing Newfoundland and Labrador metropolitan area.

New Brunswick ($59,347) had the lowest median income in Canada in 2015, followed by Quebec ($59,822). Median household income grew by 8.9% in Quebec from 2005, the second-slowest provincial/territorial growth rate in Canada over the decade. Montréal, the largest city in the province, had a median total income of $61,790 in 2015, up 8.8% from 2005.

Despite a low median income growth rate in Quebec, several metropolitan areas in resource rich areas had relatively high income growth. Median incomes in Rouyn-Noranda (+20.4%), Val D'or (+18.0%) and Sept-Îles (+13.4%) all grew faster than 10%, as did those in Québec (+11.1%). Conversely, median incomes were 4.1% lower in Baie-Comeau.

In the Eastern Townships, Granby (+19.1%) and Cowansville (+16.0%) had among the highest growth in the number of households within the province. However, median income growth in Granby (+3.8%) and Cowansville (+1.8%) were well below the Quebec average of 8.9%. Both Granby and Cowansville had higher-than-average growth in the number of people over the age of 65 and they also had relatively high levels of manufacturing.

The territories: Strong income growth

Median household income rose significantly in all three territories. The overall median income growth rate of the territories was 22.4%, second only to the growth seen on the Prairies (+25.7%).

Nunavut led the country with a median income growth of 36.7%. The growth in Nunavut reflected more workers in the resource sector and government sector over the decade.

The Northwest Territories had the second-highest median income growth in the North at 24.5%, followed by Yukon (+18.9%).

British Columbia just above the national growth rate

The median household income in British Columbia was $69,995 in 2015, seventh among the provinces and territories, down from sixth in 2005. Median incomes increased 12.2% from 2005, 1.4 percentage points above the Canadian average, making British Columbia the eighth-fastest growing region over the decade. Fewer manufacturing and agricultural jobs coincided with employment increases in utilities, health care and social assistance, and forestry and construction sectors.

Every metropolitan area in British Columbia experienced some growth in their median income. Median income growth ranged from 2% or less in Powell River, Port Alberni and Quesnel to over 20% in Cranbrook (+21.8%), Prince Rupert (+23.2%), Terrace (+24.6%), Fort St. John (+27.5%) and Dawson Creek (+31.6%). Vancouver, with a median income of $72,662 in 2015, experienced an income growth rate of 11.2% since 2005, somewhat below the provincial rate.

Almost two-thirds of households used a tax-assisted savings option

With an aging population and longer life expectancies, the need to save for retirement is high on many people's minds. Canadians use a variety of methods to save for their retirement, including employer sponsored Registered Pension Plans (RPPs), or tax-sheltered savings in either Registered Retirement Savings Plans (RRSPs), or Tax-Free Savings Accounts (TFSAs). In 2015, almost two-thirds (65.2%) of Canada's 14 million households contributed to one of the three major types of registered savings accounts. Just over 30% of households contributed to more than one account, and 9.3% contributed to all three.

Households with lower income were more likely to contribute to TFSAs than to RRSPs or RPPs, and contribution rates generally increased with income. Among households with after-tax income below $80,000, a larger proportion contributed to TFSAs (33.8%) than to RRSPs (20.1%) or RPPs (17.6%). However, households with higher income were generally more likely to contribute regardless of the type of account.

People living in low-income households

Low income relatively stable from 2005 to 2015

This Census release uses the After Tax Low Income Measure (LIM-AT). The concept underlying the LIM-AT is that a household has low income if its income is less than half of the median income of all households.

The low-income rate was relatively stable over the decade, edging up from 14.0% in 2005 to 14.2% in 2015. While the rate was relatively stable, some groups and regions saw an increase in low income, while others had fewer low-income households.

Fewer children living in low income, more low income seniors

Younger Canadians were more likely to live in low income than adults in 2015. Among children 17 years of age and younger, the low income rate was 17.0% compared with 13.4% for Canadian adults.

A smaller proportion of children aged 5 or younger were living in low income households in 2015, as the rate decreased from 18.8% to 17.8% over the decade, while it was unchanged for children 6 to 15 years of age at 17.0%. However, a larger proportion of Canadians 65 years of age or older were in low income in 2015 compared with 2005. The rate of senior Canadians in low income rose from 12.0% in 2005 to 14.5% by 2015. While the increase was particularly strong for senior men, overall, senior women were still more likely to be in low income in 2015.

Low income down sharply in Newfoundland and Labrador and Saskatchewan

From 2005 to 2015, low income fell sharply in Newfoundland and Labrador (from 20.0% to 15.4%) and Saskatchewan (from 16.8% to 12.8%). In addition, a smaller share of the population was living in low income in Alberta and Quebec. In Ontario however, the low-income rate rose from 12.9% to 14.4%.

With its decline in low income, Saskatchewan moved from having the fourth-highest low-income rate among provinces in 2005 to having the second-lowest rate in 2015, just behind Alberta (9.3%). Newfoundland and Labrador moved from the highest rate in 2005 to fifth highest in 2015, leaving Nova Scotia, New Brunswick and Prince Edward Island with the highest incidences of low income in Canada.

Low-income rates fell fastest in metropolitan areas related to the resource boom and rose fastest in manufacturing intensive Ontario metropolitan areas

Changes in low income for metropolitan areas also reflected sectoral boom and bust. The largest declines in low income occurred in metropolitan areas in resource-rich areas of the country. The low-income rate in St. John's fell from 16.0% in 2005 to 12.0% in 2015, while in Saskatoon it fell from 15.3% to 11.7%. The metropolitan areas with the largest increases in low income were in Ontario, where every large metropolitan area saw an increase in their low income rate, led by London (from 13.3% to 17.0%) and Windsor (from 14.0% to 17.5%).

For additional information on the incidence of low income for children, see the Census in Brief article "Children Living in Low Income Households."

Incomes of couples: Nearly one-third of all couples had fairly equal incomes

There were 8.2 million married or common-law couples in Canada in 2016. Among the vast majority of these couples (95.9%), each partner received some form of income in 2015, up significantly from about two-thirds of couples in the mid-1970s. Although one partner often received substantially more than the other, the incomes of nearly one-third (32.0%) of couples were fairly equal (both earning from 40% to 60% of the couple's total income). This was up from 30 years ago, when 20.6% of couples had fairly equal incomes.

Many factors have contributed to this advance, led by the increased labour force participation of women. Combined with a narrowing of the gender wage gap, women now contribute a larger portion of the couple's combined income.

Partners also receive income from sources such as government transfers, which can account for an important portion of a couple's income, particularly for seniors and couples with children. Changes to transfer programs, as well as demographic shifts such as population aging, have also contributed to a change in the relative split in income between partners.

Men are more likely to be the higher income recipient

While partner's incomes were fairly equal in one-third of couples, in 50.7% of couples a male had relatively higher income while in 17.3% a female had relatively higher income.

This too, has changed over time. In 1985, a man had relatively higher income in 71.3% of couples compared with 8.0% for women.

The combined median total income of couples was $87,688 in 2015. The higher income partner had a median income of $59,121, more than double that of the lower income partner ($25,015).

Same-sex couples have higher incomes

Median incomes were higher in same-sex couples than in opposite-sex couples, in part because a greater proportion of same-sex couples are in their prime working years. Female same-sex couples had a median total income of $92,857 in 2015, while male same-sex couples had a median income of $100,707—the highest among all couple types. In fact, over 12% of male same-sex couples had incomes over $200,000, compared with 7.5% of female same-sex couples and 8.4% of opposite-sex couples.

Lower income partners in same-sex couples also had higher median incomes than their opposite sex counterparts. The median income of lower income partners was $31,192 in male same-sex couples and $30,942 in female same-sex couples compared with $24,969 in opposite-sex couples.

In 2015, a greater proportion of female same-sex couples (38.4%) had fairly equal incomes compared with opposite-sex (32.0%) or male same-sex couples (33.2%).