Hamilton poverty rate still tops provincial average

Kevin Werner
Published on May 09, 2008

There were few silver linings within the Canadian census data released last week that, once again showed Hamilton's poverty rate is higher than the provincial average.

The city's poverty rate shocked the community when the Low Income Cut-Off (LICO) rate was found to be at about 20 per cent.

Hamilton's poverty rate has dipped to about 18.1 per cent, according to Statistics Canada's 2006 census results, but still exceeds Ontario's 14.7 per cent rate. The census figures include the years 2005 to 2006.

Hamilton has almost 90,000 people living below the LICO, including a high number of seniors and Aboriginal populations. About 21,600 children, about 23.6 per cent, live below the poverty line, said Liz Weaver, director of the Hamilton Roundtable for Poverty Reduction. The last census showed 24 per cent of children faced this situation.

"There are still a lot of people who live below the low income cutoff line," she said. "And the number of children hasn't decreased."

The community focus to eradicate poverty was still in its early stages two to three years ago, said Ms. Weaver. It was then that the Hamilton Roundtable for Poverty Reduction began to compile demographic information, examine the issue and establish a partnership among the city's community leaders to devise a comprehensive strategy to tackle poverty.

Since the organization released its recommendations, the city has taken action that has improved the lives of people living in poverty, said Ms. Weaver.

For instance, the organization urged more investment in the lives of children, youth and their families to tackle the root causes of poverty and break the cycle of poverty for families.

In response, the city has returned the municipal portion of the National Child Benefit in 2006 and 2007, which has boosted incomes, approved an affordable transit pass pilot program, supported individuals to own their homes and earmarked funds for early learning and child care programs. The province has also responded to Ontario's poverty rate by establishing a minister responsible for poverty reduction.

An Ontario-directed task force is scheduled to hold public sessions later this year and Ms. Weaver is hoping one of the meetings will occur in Hamilton.

"We want to share our challenges and successes with everybody," said Ms. Weaver. "But any big changes (for poverty reduction) will only happen at the provincial and federal levels."

In addition, businesses, the city and social service organizations have created about 90 initiatives to fulfill their mandate to Make Hamilton the Best Place to Raise a Child.

The census figures confirmed some startling demographic trends that began a few years ago and don't seem to be slowing down.

The median income for a Hamilton worker dropped 4.3 per cent to $17,380, while the median income for a middle class resident increased 2.7 per cent, from $67,753 to 69,566. An ever-widening income gap reflects what has been occurring across the country.

For 25 years, wages have stagnated, reported Statistics Canada.

The median income for Canadian workers had increased to $41,401 in 2005, from $41,348 in 1980, which amounts to about $1 extra per week.

Incomes of the richest Canadians increased by 16.4 per cent, while incomes of the poorest fell by 20.6 per cent over the last 25 years.

"It is disturbing," said Ms. Weaver.

To link the roundtable with further poverty reduction goals, some of its members, including Ms. Weaver, sit on the recently created Jobs Prosperity Collaborative, which is seeking to boost Hamilton's anemic economic development landscape. She said one of the best ways to reduce poverty is for the city to attract companies.

"It would turn the environment around for the whole community," she said.

The roundtable's statistics reveal the city can make even more of an impact on its poverty rate by targeting the so-called working poor - full-time employees earning less than the LICO.

Programs such as businesses establishing a living wage, the city providing income support and further increases to the minimum wage can be implemented, she said.

"I think the (roundtable) has made a difference," she said. "But we can do more."

Poverty picture in Hamilton

According to 2006 Statistics Canada data, Hamilton's poverty rate is 18.1 per cent.

• Ontario's poverty rate is 14.7 per cent.

• Almost 90,000 people in Hamilton live below the Low Income Cut Off

• About 21,600 children in Hamilton live below the poverty line.