Indicator 6.3.4 - Incidence of low income in forest-based communities
core indicator
The incidence of low income is used by Statistics
Canada as a proxy measure for poverty in Canada.
It is defined as the proportion of families or individuals
below the low income cut-off, which is determined
on the basis of a general assumption that families or
individuals spending 70% or more of their income on
basic necessities are in strained circumstances. For
families, the low income cut-off varies depending on
the size of the family and the size of community where
they live. In 2000, the low income cut-off for a family
of three living in a rural area was $19 738, while in
small urban regions it was $22 635.
A measure of low income in forest-based communities
provides a strong signal about the ability of residents
to secure a living wage. Social scientists have been
studying issues of poverty in resource-based communities
for several decades and have put forth many
theories about its prevalence. Some argue that higher
rates of poverty are related to deficits in human
capital while others counter that the structure of
resource-based economies is a primary reason for
the preponderance of low wages. Researchers also
focus on pockets of poverty within specific groups
such as women and minorities. Regardless of the
reasons for low income, researchers have identified
a close relationship between low income and other
social and health issues that draw down the capacity
of forest-dependent communities to take advantage
of opportunities and respond positively to challenges
in the community.
For non-Aboriginal communities in all regions of
the country, higher incidences of low income are
generally associated with greater forest dependence
(Table 6.3g). For Canada, multiresource-dependent
rural CSDs report a rate of 7.8%, significantly lower
than forest-dependent CSDs (10.4%). Other single
resource dependent CSDs also report a significantly
lower incidence of low income (7.2%) than
forest-dependent CSDs. The difference between
multiresource-dependent and forest-dependent
communities is especially strong in New Brunswick
where the incidence of low income in multiresourcedependent
communities is 11.5% versus 15.7% in
forest-dependent communities.
Table 6.3g Average incidence of low income (%) in non-Aboriginal census subdivisions.
| Region |
Multiresource-dependent |
Other single resource dependent |
Forest-dependent |
| Canada |
7.8a* |
7.2a |
10.4b |
| NL |
11.6a |
11.3a |
11.8a |
| PE |
3.5a |
5.7a |
nd |
| NS |
13.4a |
11.9a |
14.5a |
| NB |
11.5a |
11.0a |
15.7b |
| QC |
9.8a |
7.2a |
10.4a |
| ON |
7.8a |
5.8b |
7.2a/b |
| MB |
8.6a |
9.4a |
12.9a |
| SK |
2.8a |
5.4b |
8.0a/b |
| AB |
4.9a |
7.5b |
8.8a/b |
| BC |
8.3a |
8.1a |
9.6a |
| YT |
nd |
nd |
nd |
| NT |
nd |
nd |
nd |
| NU |
nd |
nd |
nd |
*Any two percentages in a region that are not followed by the same letter are significantly different (P‹0.05).
nd: Not determined due to insufficient data.
For reasons of data quality and confidentiality,
Statistics Canada has suppressed information on
the incidence of low income in many of the Aboriginal
CSDs. As a result, some comparisons are
impossible and the reported statistics should be
interpreted cautiously. Across Canada, nonforestdependent
Aboriginal CSDs report a rate of 1.3%
for the incidence of low income, while the rate in
forest-dependent CSDs is significantly higher at
4.4% (Table 6.3h).
Table 6.3h Table Average incidence of low income (%) in Aboriginal census subdivisions.
| Region |
Nonforest-dependent |
Forest-dependent |
| Canada |
1.3 |
4.4* |
| Atlantic |
6.0 |
11.2 ns |
| Central |
2.5 |
nd |
| Prairies |
1.3 |
8.3* |
| BC |
nd |
nd |
| Territories |
nd |
nd |
*Significantly different from the incidence of low income for nonforest-dependent communities in the same region (P‹0.05).
ns: Not significantly different from the incidence of low income for nonforest-dependent communities in the same region (P‹0.05).
nd: Not determined due to insufficient data.