Statistics Canada finds 9% of tax filers faced recurring low income 2016–22 with marked disparities
A new analysis from Statistics Canada sheds light on which Canadians are most likely to experience prolonged periods of low income, offering insights that may be relevant for long-term financial planning discussions. The study examines income patterns over seven years, focusing on individuals who repeatedly fell below a relative income threshold.
Persistent low income is defined in the report as earning less than the after-tax low-income measure in at least four of the seven years between 2016 and 2022. This threshold is set at 50% of the median adjusted income of tax filers and their families, allowing for comparisons across households of different sizes.
According to the findings, “9% of tax filers aged 15 and older experienced persistent low income,” indicating that a notable minority faced sustained financial strain rather than short-term income disruption.
The likelihood of remaining in low income varied considerably by demographic group. Female lone parents were among the most affected, with nearly one-quarter experiencing persistent low income during the period studied.
Elevated rates were also observed among individuals without a high school diploma and those reporting long-term limitations in daily activities. Recent immigrants and racialized Canadians were likewise more likely than the overall population to remain below the low-income threshold for multiple years.
Education emerged as a key differentiator. Canadians with a university degree were significantly less likely to experience ongoing low income compared with those who had completed only high school or less, reinforcing the role of educational attainment in long-term earnings stability.
The report also tracked transitions out of low income. While some individuals were able to improve their financial position relatively quickly, others struggled to do so.
Among those who were in low income in 2016, nearly one-third moved above the threshold the following year, although some later fell back. Persistent barriers, including lower education levels and activity limitations, were linked to slower or less durable income recovery.
