Poverty by Activity Limitations
Definition
Percentage of population (no activity limitations, activity limitations often or always) living below the poverty line as defined by the Market Basket Measure (2018-base).
The Market Basket Measure (MBM) is Canada’s official poverty line. It is based on the cost of a specific basket of goods and services representing a modest, basic standard of living as determined by Employment and Social Development Canada (ESDC). If a household’s disposable income falls below the amount needed to purchase this basket of goods and services all members of the household are considered to be living in poverty.
With respect to activity limitations, respondents to the Census are asked to consider only difficulties or long-term conditions that have lasted or are expected to last for six months or more.
Measurement and Limitations
The first version of the Market Basket Measure was established in 2000 by a working group of federal, provincial and territorial officials, led by Human Resources and Skills Development Canada (HRSDC). Since then, it has been revised several times, most recently between 2018 and 2020. In 2019, with passage of the federal Poverty Reduction Act, the Market Basket Measure was designated to be the official measure of poverty in Canada.
The MBM thresholds represent the cost of specified qualities and quantities of food, clothing, shelter, transportation and other necessities for a reference family of two adults and two children. A calculation is made to adjust the MBM thresholds for other family sizes.
The MBM thresholds (2018-base) reflect the cost of the following five MBM basket components:
- A nutritious diet as specified in Health Canada’s 2019 National Nutritious Food Basket.
- A basket of clothing and footwear according to the 2012 Social Planning Council of Winnipeg and Winnipeg Harvest Acceptable Living Level (ALL) clothing basket.
- Shelter cost of renting a three‑bedroom unit (as per the Canadian National Occupancy Standard for a reference family of 4), including electricity, heat, water and appliances.
- Transportation costs – a combination of using public transit and owning and operating a modest vehicle.
- Other necessary goods and services, including cell phone service.
One advantage of the MBM versus other measures of low income is that it takes into account variations in the cost of living in different parts of the country. Currently, MBM thresholds are calculated for 53 geographic areas (19 specific communities and 34 population centre size and province combinations). A complete list of Market Basket Measure thresholds can be found at https://www12.statcan.gc.ca/census-recensement/2021/ref/dict/tab/index-eng.cfm?ID=t2_2.
One limitation of the MBM is that it is a relatively recent way of measuring low income and continues to undergo revisions. In comparison with other measures, such as the Low Income Measure (LIM) and the Low-Income Cut-Off Lines (LICO), trend data is currently more limited.
For a more extensive description of the Market Basket Measure presenting results from the most recent comprehensive review see: https://www150.statcan.gc.ca/n1/en/pub/75f0002m/75f0002m2020002-eng.pdf?st=bJkZEtod
Source
Customized Census data, “Community Poverty Project – Table 1: Selected cultural and demographic characteristics, Census of Population, 2016 and 2021” acquired through the Canadian Community Economic Development Network’s Community Data Program.
Poverty by Activity Limitations in the Sustainable Development Goals
Click on the SDG to reveal more information
1. End poverty in all its forms everywhere
Extreme poverty rates have been cut by more than half since 1990. While this is a remarkable achievement, one in five people in developing regions still live on less than $1.90 a day, and there are millions more who make little more than this daily amount, plus many people risk slipping back into poverty.
Poverty is more than the lack of income and resources to ensure a sustainable livelihood. Its manifestations include hunger and malnutrition, limited access to education and other basic services, social discrimination and exclusion as well as the lack of participation in decision-making. Economic growth must be inclusive to provide sustainable jobs and promote equality.
10. Reduce inequality within and among countries
The international community has made significant strides towards lifting people out of poverty. The most vulnerable nations – the least developed countries, the landlocked developing countries and the small island developing states – continue to make inroads into poverty reduction. However, inequality still persists and large disparities remain in access to health and education services and other assets.
Additionally, while income inequality between countries may have been reduced, inequality within countries has risen. There is growing consensus that economic growth is not sufficient to reduce poverty if it is not inclusive and if it does not involve the three dimensions of sustainable development – economic, social and environmental.
To reduce inequality, policies should be universal in principle paying attention to the needs of disadvantaged and marginalized populations.