Hidden poverty in Canada

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Faculty of Social Sciences

By Paul Logothetis

Media Relations Agent, University of Ottawa

Man opening wallet to reveal it's empty
Towfiqu Barbhuiya (Unsplash)
Canada's official poverty rate doesn't tell the full story of hunger and food insecurity in Canada according to a new landmark report: Measuring Poverty with a Material Deprivation Index (MDI): An Updated Index for Canada, published by Food Banks Canada.

Geranda Notten, Full Professor of Comparative Public Policy at the University of Ottawa's Graduate School of Public and International Affairs, helped lead the report which introduces a Material Deprivation Index (MDI) – a poverty metric that's widely used in Europe to measure a poverty level standard of living – with Canadian data.

The MDI illuminates hidden poverty by showing that an estimated 25% of Canadians are living in poverty because they cannot afford two or more household essentials. That's nearly 6 million more Canadians than is reflected in StatsCan's most recent poverty rate data.

Professor Notten, from the Faculty of Social Sciences, provides an overview of the new report:

Question: Why is MDI the measure you chose for this report?
Geranda Notten: "MDI measures poverty by looking at a series of factual situations Canadians view as necessary to achieve an acceptable standard of living. Our index includes 11 such items, like whether someone can keep their home at a comfortable temperature all year round. In 2023, we found 1-in-4 Canadian adults could not afford two or more of such items."


Q: Why is MDI not used in Canada? Should it be?
GN: "Historically, poverty in Canada has been measured by looking at a family’s income. It’s an important determinant of a family’s standard of living, but families’ specific needs and circumstances matter. Unfortunately, measures of income poverty have trouble accounting for family specific situations.

Instead of measuring income – an input – MDI measures families’ material outcomes. An MDI asks whether people can afford a series of goods, services, and activities that most Canadians view as necessary for an acceptable standard of living. It is more accurate because it does not need to know whether a family member has a chronic illness, needs a special diet or is still paying down student loans."


Q: What are your key takeaways from this report? What findings should we be most alarmed about?
GN: "Poverty in Canada is more widespread than Canada’s official poverty indicator suggests because it underestimates the amount of money families need for their circumstances. For instance, due to a recent move one family’s apartment may cost hundreds more than that of their neighbours. The same holds true when a family member needs ongoing medication while they don’t have access to pharmacare."

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