Poverty

Poverty rate according to the Market Basket Measure.

This indicator is measured in the Canadian Income Survey (CIS) and the Census of Population.

This poverty rate is the percentage of people who live in poverty based on the 2018-base Market Basket Measure (MBM). According to the MBM, a family lives in poverty if they cannot afford the cost of a specific basket of goods and services in their community, after adjusting for family size. The basket represents a modest, basic standard of living. It includes the costs of food, clothing and footwear, transportation, shelter and other expenses for a reference family. These costs are compared to disposable income of families to determine whether or not they fall below the poverty line.

For more information, please refer to:

• Table 11-10-0066-01 – Market Basket Measure (MBM) thresholds for the reference family by Market Basket Measure region, component and base year
• Table 11-10-0104-01 - Market Basket Measure thresholds by Market Basket Measure region and family size, in current dollars
• Report on the second comprehensive review of the Market Basket Measure
• Technical paper for the Northern Market Basket Measure of poverty for Yukon and the Northwest Territories
• Construction of a Northern Market Basket Measure of poverty for Nunavut

• Canadian Income Survey (CIS)
• Census of Population

For products related to poverty, including data tables, data visualizations, articles, and other product types see Analytical releases: Poverty or view all analytical releases.

This indicator aligns with the following frameworks:

• The Canadian Indicator Framework for the Sustainable Development Goals
  • CIF Indicator 1.1.1 – Poverty rate, as measured by Canada's official poverty line
• Sustainable Development Goals (SDG)
  • SDG Goal 1 – No poverty
    • SDG Indicator 1.1.1 – Proportion of population below the international poverty line, by sex, age, employment status and geographical location (urban/rural)
    • SDG Indicator 1.2.1.PR – Market Basket Measure
    • SDG Indicator 1.2.2 – Proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions
• Social inclusion indicators for Canada's ethnocultural groups
  • Income and wealth
    • Poverty rate (MBM)
• Federal sustainable development strategy (FSDS)
  • FSDS Goal 1 – Reduce poverty in Canada in all its forms
    • FSDS Target Indicator – Percentage of Canadians below Canada's Official Poverty Line
• Gender Results Framework (GRF)
  • Poverty reduction, health and well-being
    • GRF Indicator 5.1.1 – Prevalence of low income, by economic family type
• Canadian Poverty Reduction Strategy
  • Canada's Official Poverty Line
  • Deep income poverty
  • Average poverty gap

The Market Basket Measure (MBM) was adopted as Canada's Official Poverty Line in June 2019. For more information regarding Canada's Official Poverty Line, refer to Opportunity for All: Canada's First Poverty Reduction Strategy.

The Poverty Reduction Act established the MBM as the official metric used to measure the level of poverty in Canada and to assess progress in meeting the poverty reduction targets. It also mandates Statistics Canada to review the MBM on a regular basis "to ensure that it reflects the up-to-date cost of a basket of goods and services representing a modest, basic standard of living in Canada”.

The Dimensions of Poverty Hub, sponsored by Employment and Social Development Canada, contains Canada's Official Poverty Dashboard. The dashboard tracks progress on 13 performance indicators (including the headline indicator). It is updated regularly by Statistics Canada as new data become available.

Related data tables on income inequality:

• Table 11-10-0102-01 – Average basket coefficient by after-tax income decile
• Table 11-10-0103-01 – Aggregate and average components of after-tax income according to the Market Basket Measure threshold, by after-tax income decile (x 1,000,000)