Income of individuals

Median employment income of individuals reached $24,300 in 2002, up 4.1% from 1997 (after adjustment for inflation) although it remained almost unchanged from 2001. The median total income of individuals was $23,100, an increase of 7.7% over 1997.

The median is the point where one-half of incomes are higher and the other half are lower. Only people with employment income were included in the calculation of median employment income.

Residents of the Northwest Territories again had the highest median employment income in Canada at $33,600, a 12.9% increase from five years earlier. The strongest growth rate during this five-year period occurred in Nunavut where median employment income of individuals rose 18.0%.

Those living in the Yukon had the second highest median employment income in 2002, at $27,600, followed by those in Ontario with $26,900 and Alberta with $25,700. This is the first time since 1996 that the median employment income in the Yukon has surpassed that of Ontario.

Among census metropolitan areas, Edmonton had the largest increase in median employment income with a 10.4% gain over the five-year period. Ottawa-Gatineau and Calgary followed with increases of 10.0% and 8.3%, respectively.

Employment income comprised about 75% of the total income in 2002, up slightly from 74% in 1997.

Employment income includes wages and salaries, commissions from employment, training allowances, tips and gratuities, and self-employment income. Total income includes income from employment, investment, government transfers, private pensions, registered retirement savings plans and other income.

After employment income, government transfers make up the next largest component of total income for individuals, about 12% in 2002 at the national level. Recent revisions to the Employment insurance program and the National Child Tax Benefit program have meant that the proportion of money received by individuals from these two programs is larger than in 1997. In 2002, payments from these two programs accounted for about 23% of government transfers to individuals, up from 21% in 1997.

A further 57% of government transfers in 2002 were provided to individuals through Old Age Security program and Canada/Quebec Pension Plan payments. This proportion is expected to continue to increase as the population ages.

The proportion of government transfer income received by individuals from social assistance, workers' compensation, sales tax credits, and provincial credits and family benefits declined considerably over the five-year period. In 2002, these components made up only 20% of total government transfers to individuals.

The relative reliance of individuals on government transfers and employment income is referred to as the economic dependency ratio. For each geographic area, it measures the amount of transfer payments received for every $100.00 of employment income.

At the national level in 2002, $16.09 was received on average for every $100.00 of employment income, a decline from $18.16 in 1997. This ratio has been declining every year since 1993.

Calgary residents continued to have the least dependence on government transfers. In 2002, they received only $8.00 in total transfers for each $100.00 in employment income.

Note: Data in this release were obtained primarily from income tax returns filed in the spring of 2002. All income data for individuals are before the payment of tax and after the receipt of transfers. All figures for previous years have been adjusted for inflation, as measured by the Consumer Price Index.

Available on CANSIM: tables 111-0004 to 111-0008.

Definitions, data sources and methods: survey number 4105.

Data for Neighbourhood Income and Demographics (13C0015, various prices), the Labour Income Profiles (71C0018, various prices) and the Economic Dependency Profiles (13C0017, various prices) are available for the following geographic levels: letter carrier routes, census tracts, urban forward sortation areas (the first three characters of the postal code), cities, towns, federal electoral districts, census agglomerations, census divisions, economic regions, census metropolitan areas, provinces, territories and Canada.

For more information, or to enquire about the concepts, methods or data quality of this release, contact Client Services (1-866-652-8443; 613-951-9720; fax: 1-866-652-8444 or 613-951-4745; saadinfo@statcan.gc.ca), Small Area and Administrative Data Division.