Author: Tony Fang, Halina Sapeha, Kerri Claire Neil, Opeyemi Jaunty-Aidamenbor
Abstract
This paper examines the dynamics of poverty in Canada, revealing that while the national poverty rate declined significantly between 1993 and 2010, this progress was not evenly shared. The study identifies six groups—Aboriginal persons off-reserve, recent immigrants, lone parents, out-of-school youth, persons with disabilities, and unattached individuals aged 45-64—as being highly vulnerable to persistent, long-term poverty. These groups not only experience drastically higher poverty rates than the general population but also remain in poverty for much longer durations. Furthermore, their economic well-being is acutely sensitive to the business cycle, as economic downturns sharply increase their likelihood of falling into poverty and decrease their chances of escaping it.
A critical finding is that for most of these vulnerable groups, their elevated risk of poverty is largely due to “unexplained” factors, rather than observable characteristics like education or health. This suggests that deeper, systemic barriers such as discrimination, non-recognition of foreign credentials, and cultural differences are primary drivers. Consequently, the authors argue that effective policy must move beyond a one-size-fits-all approach. They recommend fostering a strong, full-employment economy as a foundational measure, complemented by targeted interventions tailored to each group’s specific barriers, such improving credential recognition for immigrants, reducing dropout rates for youth, and enhancing workplace accommodations for persons with disabilities.