Income includes money received through work, investments, pension sources, government sources and other regular cash payments.[1]
Why is this important?
Income is a crucial social determinant of health and impacts a person's physical and mental health. A person or household's income affects their access to healthy food and to suitable, safe and affordable housing.[2]
Indicators
Annual Income |
Measure: Median Annual IncomeAnnual household income is the amount of money a private household receives over the course of one calendar year. After-tax household income is the total income of a household minus relevant taxes that would be paid (such as income taxes).[3] Median income is the mid-point of all incomes. In a grouping of household incomes, half the incomes will be below the median and half will be above the median. The charts below present information from the census about the median annual after-tax income of households in Wellington County. Key FindingsIn 2020, the median after-tax income was highest for households in Wellington County (including Guelph) followed Ontario then Canada. The median after-tax income in Guelph ($82,000) was lower than Wellington County as a whole ($85,000). Median after-tax income grew by 11.1% in Wellington County and 11.6% in Guelph from 2015 to 2020. This was higher than the growth rate in Canada (9.8%) but lower than Ontario (12.8%) as a whole. The income growth rate from 2015 to 2020 was higher than previous between-census periods and reflects "a combination of the effects of the pandemic on the labour market that reduced household earnings in 2020, the pandemic relief programs that offset this reduction in earnings, and the successive increases in child benefits during this period."[4]
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*Dollar amounts have been adjusted for inflation and given in 2020 constant dollars. **Wellington County includes Guelph. Sources:
In 2020, among the municipalities and townships in Wellington County, median after-tax household income was highest in Puslinch, Guelph/Eramosa, and Erin. Median after-tax income was lowest in Wellington North.
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*Dollar amounts have been adjusted for inflation and given in 2020 constant dollars. Source: Statistics Canada. 2022. (table). Census Profile. 2021 Census of Population. Statistics Canada Catalogue no. 98-316-X2021001. Ottawa. Released July 13, 2022. https://www12.statcan.gc.ca/census-recensement/2021/dp-pd/prof/index.cfm?Lang=E (accessed July 18, 2022). Why is Annual Income Important?Annual income is an important part of understanding income inequality, low income and economic growth, all of which affect an individual's social, physical and mental wellbeing. Looking for more information?For more information about this measure please download the excel file below. |
Low Income |
Measure: Low-Income Population in HouseholdsThe charts below present information from the census about the population in private households living with low-income in Wellington County. Low-income is defined using the low-income measure, after-tax (LIM-AT). The LIM-AT is "a fixed percentage (50%) of median adjusted after-tax income of private households". The measure is "adjusted" for different household sizes to reflect that a household's needs increase as the number of household members increases. When a person's household income is less than 50% of the median after-tax household income of equivalent households, they are considered to be living with low-income based on the LIM-AT.[5] In 2015, the LIM-AT for a 4-person household (in 2020 constant dollars) was $48,524. In 2020, the LIM-AT for a 4-person household was $53,140.[6] Key FindingsIn 2020, the proportion of the population living with low-income in Guelph was greater than in Wellington County (excluding Guelph). Both Guelph and Wellington County had a smaller proportion of the population living with low-income (8% and 7%, respectively) when compared to Ontario and Canada, as a whole (10% and 11%, respectively). Overall, low-income rates declined across Canada from 2015 to 2020. This decline was largely driven by higher government income support (particularly pandemic related benefits, which benefitted the working-age population) and the Canada Child Benefit (which benefitted parents and children).[4]
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*Wellington County does not include Guelph Sources:
The percent of the population living with low-income varies across the municipalities in Wellington County. Wellington North has the highest proportion of people living with low-income (15%), while Guelph/Eramosa and Puslinch have the lowest proportion (6%). Loading Chart...
Sources:
Why is Low Income Important?People with the lowest incomes have higher rates of mortality, are more likely to rate their physical and mental health as fair or poor and are more likely to report having multiple chronic conditions. They are also more likely to deal with a disability that limits their participation in daily activities and to experience depression, anxiety, mood disorders, Alzheimer's, dementia and schizophrenia.[7,8] People living in poverty also experience more barriers to health care, including access to health care insurance. They are also less likely to feel that their service provider has met their health need.[8] Poverty has a particularly significant effect on children; not only do they experience many of the same negative impacts as adults, but even if they move out of poverty, they continue to experience more health issues throughout their life.[9] Looking for more information?For more information about this measure please download the excel file below. |
Income Inequality |
Measure: Gini IndexThe charts below present information from the census about the Gini index on adjusted household after-tax income in Wellington County. The Gini index indicates how equally income is distributed among a population. Values range from 0 to 1. A value of 0 indicates that income is distributed equally among the population (all households receive exactly the same amount of income). A value of 1 indicates a perfectly unequal distribution (one household has all the income). The measure is "adjusted" for different household sizes to reflect that a household's needs increase as the number of household members increases.[3] Key FindingsIn 2020, the Gini index in Wellington County (including Guelph) was lower than Ontario and Canada (that is, income was distributed more equally in Wellington County than Ontario and Canada). The Gini index in Guelph (0.273) was slightly lower than Wellington County as a whole (0.283). Between 2015 and 2020, the Gini index decreased across all provinces and territories. This reduction in income inequality was largely driven by increases in government income support, such as pandemic-related benefits and the Canada Child Benefit.[4] Local Gini index data were not available in 2015, thus it is not possible to compare Gini index values for Guelph and Wellington County across time.
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*Wellington County includes Guelph. Source: Statistics Canada. 2022. (table). Census Profile. 2021 Census of Population. Statistics Canada Catalogue no. 98-316-X2021001. Ottawa. Released July 13, 2022. https://www12.statcan.gc.ca/census-recensement/2021/dp-pd/prof/index.cfm?Lang=E (accessed July 18, 2022).
The Gini index varied across municipalities and townships in Wellington County. Centre Wellington (0.260), Minto (0.262), Guelph/Eramosa (0.264), and Wellington North (0.264) had the lowest Gini indexes (income was distributed most equally). Puslinch had the highest Gini index (0.398; income was distributed least equally).
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Source: Statistics Canada. 2022. (table). Census Profile. 2021 Census of Population. Statistics Canada Catalogue no. 98-316-X2021001. Ottawa. Released July 13, 2022. https://www12.statcan.gc.ca/census-recensement/2021/dp-pd/prof/index.cfm?Lang=E (accessed July 18, 2022). Why is Income Inequality Important?Income inequality has negative consequences for individuals, communities and economies. Higher rates of income inequality are associated with higher rates of mental illness, drug use, infant mortality, teenage births, obesity and homicide. Countries with more financial equality benefit from improved child wellbeing, increased feelings of trust, increased life expectancy, improved educational scores and higher social mobility.[10] Looking for more information?For more information about this measure please download the excel file below. |
Note
The census of the population is mandatory and conducted once every five years. The census gathers information from all Canadian citizens, landed immigrants and non-permanent residents (people who have a work or student permit or refugee status). The census captures information from the entire population about demographic, social, and economic characteristics.[11]
References
[1] Statistics Canada. (2016). Total income of private household. http://www23.statcan.gc.ca/imdb/p3Var.pl?Function=DEC&Id=252173
[2] Mikkonen, J., & Raphael, D. (2010). Social Determinants of Health: The Canadian Facts. Toronto: York University School of Health Policy and Management. www.thecanadianfacts.org/The_Canadian_Facts.pdf
[3] Statistics Canada. (2022). Dictionary, Census of Population, 2021: After-tax income. https://www12.statcan.gc.ca/census-recensement/2021/ref/dict/az/Definition-eng.cfm?ID=pop004
[4] Statistics Canada. (2022). Pandemic benefits cushion losses for low income earners and narrow income inequality – after-tax income grows across Canada except in Alberta and Newfoundland and Labrador. https://www150.statcan.gc.ca/n1/daily-quotidien/220713/dq220713d-eng.htm
[5] Statistics Canada. (2017). Dictionary, Census of Population, 2021: Low-income measure, after tax (LIM-AT). https://www12.statcan.gc.ca/census-recensement/2016/ref/dict/fam021-eng.cfm
[6] Statistics Canada. 2022). Table 11-10-0232-01 Low income measure (LIM) thresholds by income source and household size. Ottawa. Released March 23, 2022. https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1110023201&cubeTimeFrame.startYear=2015&cubeTimeFrame.endYear=2020&referencePeriods=20150101%2C20200101 (accessed July 18, 2022).
[7] Population Health Promotion Expert Group: Working Group on Population Health Reports. (2008). Closing the Health Gap: Synthesis of the Significant Population Health Reports of 2008. http://www.phn-rsp.ca/pubs/chg-ceps/pdf/chg-ceps-eng.pdf
[8] Lightman, E., Mitchell, A., & Wilson, B. (2008). Poverty is Making us Sick: A Comprehensive survey of income and health in Canada. http://www.wellesleyinstitute.com/wp-content/uploads/2011/11/povertyismakingussick.pdf
[9] Bloch, G., Etches, V., Gardner, C., Pellizzari, R., Rachlis, M., Scott, F., & Itamar, T. (2008). Why poverty makes us sick: Physician backgrounder. Ontario Medical Review. 75:32-37.
[10] Pickett, K., & Wilkinson, R. (2009). The Spirit Level: Why More Equal Societies Almost Always Do Better. London: Allen Lane.
[11] Statistics Canada. (2016). Census of Population. http://www23.statcan.gc.ca/imdb/p2SV.pl?Function=getSurvey&SDDS=3901