Despite solid performance, high rates of poverty and a large gap in income between the rich and everyone else put stress on a society and on the economy
The Conference Board of Canda is an independent, not-for-profit applied research organization that specializes in economic trends, as well as organizational performance and public policy issues. The group’s 2012 “report card” on Canada’s performance has revealed that, despite a general “B” grade in the country’s “society” performance, Canada places 12th (out of 17 peer countries) on income equality. Canada has been unable to reverse the rise in income inequality – and poverty rates – that occurred in the 1990s. From February 2013…
Rising poverty rates and greater income inequality can mean a weakening in labour force attachment and social cohesion,” said Daniel Muzyka, President and CEO of The Conference Board of Canada. Income inequality rose markedly in the 1990s before stabilizing in the early 2000s. Since 1990, the richest 20 per cent of Canadians has increased its share of total national income, while the poorest and middle-income groups lost share.
Although Canada has a high level of income inequality compared to most of its peers, it surpasses most other countries in intergenerational income mobility. Canada earns an “A” grade and ranks 5th of 13 peer countries on this indicator. Intergenerational income mobility can be seen as a measure of equality of opportunity, as it measures how likely individuals are to remain in the same income class as their parents.
Canada ranks 15th on both child poverty and working-age poverty indicators. The child poverty rate of 15.1 per cent is higher than it was in the mid-1990s. Canada’s rate of working-age poverty increased from 9.4 per cent in the mid-1990s to 11.1 per cent in the late 2000s. Compared to its peers, Canada had the third highest increase in the working-age poverty rate during this period. As a result, Canada’s grade for this indicator slipped from a “C” to a “D”.
Aside from these results, Canada gets solid grades in the 17-indicator analysis. For example, Canada ranks first in citizens’ acceptance of diversity. Canada also gets top marks on measures of:
- life satisfaction;
- elderly poverty rate;
- income gap between disabled and able-bodied workers; and
- suicide rate.
Canada’s performance is the Society category is better than many of its peers, but it ranks below the Nordic countries, the Netherlands, and Austria – all of whom get ‘A’ grades. The United States is by far the worst performer overall; moreover, the U.S. ranks last in six of the 17 indicators.
“How Canada Performs” is a multi-year research program at The Conference Board of Canada to help leaders identify relative strengths and weaknesses in Canada’s socio-economic performance. The How Canada Performs website presents data and analysis on Canada’s performance compared to 16 peer countries in six performance categories: Economy, Innovation, Environment, Education and Skills, Health, and Society.
We speak with Brenda Lafleur, director of the Conference Board’s “How Canada Performs” research.
RELATED | News release: Canada Failing to Close the Income Inequality Gap (Feb. 4, 2013) | Conference Board of Canada: Income inequality | Dan Cayo, Vancouver Sun: Canada fails the grade in reversing poverty (Feb. 5, 2013) | The Huffington Post: Hollowing Out Of Middle Class Jobs In Canada: TD Bank Sees Low-, Middle-Wage Jobs Shrinking (Feb. 26, 2013) |
