Why Poverty Is Increasing
Why is the Poverty Rate Increasing in Canada?
The 2022 poverty rate increased 2.5 percent from 2021 and 3.5 percent from 2020. This represents 1.4 million more people living in poverty in Canada in 2022 compared to 2020. Statistics Canada reports the following from that period of time:
- The cost of food increased by 8.9 per cent;
- shelter costs increased by 6.9 per cent;
- transportation costs increased by 10.6 per cent; and
- health and personal care costs increased by 4.1 per cent.
According to the 2024 National Advisory Council on Poverty costs remain high for key household expenses such as groceries, transportation and housing (Department of Finance Canada, 2024).
Almost two million Canadians used a food bank in 2023, an increase of 32 per cent from the previous year (Food Banks Canada).
Of these two million Canadians, many were people accessing services for the first time.
- One in five people used charitable services to meet essential needs in 2023, outpacing the capacity of the non-profit sector (CanadaHelps, 2024).
- 27 per cent of recent Statistics Canada survey respondents had to borrow money from friends or relatives, take on additional debt or use credit to meet day-to-day expenses (Statistics Canada 2022).
- Consumer prices rose faster than average hourly wages, which puts pressure on government benefits too.
Consumer prices increased by 7.6 per cent, while average hourly wages rose 5.2 per cent from July 2021 to July 2022 (Statistics Canada, 2022b).
Poverty is persistent. More than three million Canadians living in poverty including 875,000 children. Another 2.5 million are at risk of poverty. In total, almost one in five Canadians are living in or at risk of poverty.
Poverty affects everyone. The impacts of poverty include reduced mental and physical health, delayed development for children, reduced social cohesion and lost productivity.
Poverty costs. A vast array of government and non-profits support and services work to address the impacts of poverty. It is estimated that poverty costs Canada $86 billion annually.
Upcoming Learning Opportunities
The Canadian Poverty Institute is pleased to release this new report by Monica Da Ponte that explores the nature of the incentive structure that lies at the heart of a poly-crisis manifesting itself in widespread homelessness, food insecurity and environmental degradation.
The report argues that if we want a Canada where all communities can thrive, that vision must be woven into the fabric of our national identity. It must serve as a guiding priority – shaping our choices, informing our success metrics, and grounding our collective accountability. Only then can we begin to make the millions of aligned decisions needed to design legislation, programs, policies, and practices that foster shared well-being. At a macro-level, achieving this vision requires two things: a broad-based individual and institutional commitment to collective well-being, and the strategic allocation of resources that reflect the scale and urgency of the need.Related Pages
Last edited: October 20, 2025