Ottawa Report: Living Standards by Alliance for Healthier Communities

Ottawa Wellbeing Report – Living Standards This is part of a series of reports that provide a snapshot of community wellbeing for Ottawa. Following the Canadian Index of Wellbeing framework, each report presents data from the eight domains of wellbeing. These domains are: Community Vitality, Democratic Engagement, Education, Environment, Healthy Populations, Leisure and Culture, Living Standards, and Time Use. This report presents data for the Living Standards domain. Due to gaps in available data at the local level, data are presented on selected indicators within the eight domains of wellbeing. Furthermore, some of the indicators found in Ottawa reports differ from those in the Canadian Index of Wellbeing. In this report, the data are presented for the City of Ottawa or the Ottawa-Gatineau Census Metropolitan Area (CMA), where specified. Where possible, data for Ottawa are compared to those for Ontario and/or Canada.

Key Messages • • • •

Poverty continues to be a concern for residents of Ottawa, with the young being most vulnerable. In Ottawa, the employment rate observed an overall increase and the unemployment rate an overall decrease between 1987 and 2013. One in five Ottawa families spends 30% or more of their household income on shelter-related expenses. Food insecurity is a public health issue that affects 8% of Ottawa’s households.

The Living Standards domain of the Canadian Index of Wellbeing is a comprehensive examination of the economic wellbeing of a population. It consists of indicators that measure income levels and distribution, economic security, poverty, employment and unemployment rates, job quality, and access to basic necessities such as housing and food. This report presents selected indicators from the Living Standards domain of the Canadian Index of Wellbeing (see Table A1 of the Appendix). What is the current data telling us? Income Levels and Distribution An individual’s income and social status have significant influences on their health status (Public Health Agency of Canada, 2013). High income earners generally have better control and discretion of the living conditions that determine their health, such as housing and ability to buy sufficient good food. Recent studies suggest that income distribution in a population may be a more important indicator of health than the amount of income earned by individuals in that population (Sharpe, 2011). Income distribution tells us how evenly economic growth is shared among individuals in a population. Large income gaps can lead to diminished economic growth, social and political instability, and poorer overall health in the 1

population (Conference Board of Canada, 2014; Public Health Agency of Canada, 2013). This section presents both income levels and distribution in Ottawa. In 2011, the median total income for all Census families 1 in the City of Ottawa was $97,010, the highest median total income among Canada’s census metropolitan areas. Ottawa has maintained the highest median total income since 2009, indicating that the city was largely unaffected by the economic downturn in 2008. In terms of income composition, the vast majority of total income for Ottawa’s private households came from market income 2 (91.4%) and the remainder came from government transfers (Statistics Canada, 2013). The proportion of total income accounted for by market income was higher for Ottawa compared to Canada (87.6%) and Ontario (87.7%) (Statistics Canada, 2013). Ottawa has a larger proportion of the richest earners compared to Ontario and Canada (Table 1). In Ottawa, 8.9% of the population aged 15 years and over had total income that put them in the top 10 percent of earners ($102,305 and over) (Statistics Canada, 2013). For Ontario and Canada, the proportions were 5.5% and 5.0%, respectively (Statistics Canada, 2013). The proportion of earners with no income or less than $27,815 was 41.7% in Ottawa, as compared to 49.6% in Ontario and 50.0% in Canada (Statistics Canada, 2013). The proportion of earners with income between $27,815 and $51,304 was lower in Ottawa at 21.1% compared to the province (23.8%) and the country (25.0%) (Statistics Canada, 2013). Table 1. Total income of population aged 15 years and over, Ottawa, Ontario, Canada, 2011. Total Income Population 15 years and over (count) Without income or less than $27,815 Without income or less than $12,025 $12,025 to $27,814 $27,815 and over $27,815 to $51,304 $51,305 and over $80,420 and over (top 10 percent) $102,305 and over (top 5 percent) $191,150 and over (top 1 percent)

Ottawa 718,960 41.7% 22.7% 19.0% 58.3% 21.1% 37.1% 17.7% 8.9% 1.3%

Ontario 10,473,665 49.6% 25.6% 24.0% 50.4% 23.8% 26.6% 11.3% 5.5% 1.1%

Canada 27,259,525 50.0% 25.0% 25.0% 50.0% 25.0% 25.0% 10.0% 5.0% 1.0%

Source: Adapted from Statistics Canada. (2013). NHS Focus on Geography Series – Ottawa. Retrieved from http://www12.statcan.gc.ca/nhs-enm/2011/as-sa/fogs-spg/Pages/FOG.cfm?lang=E&level=4&GeoCode=3506008

Table 2 presents the distribution of Ottawa’s private household population by after-tax income adjusted for family size. In Ottawa, 64.7% of the population fell under the top half of the income distribution, 1

“Census families,” as defined by Statistics Canada (2013), include couple families, with or without children, and long-parent families. 2 Includes income from all non-government sources, such as employment, investment, private pensions, and spousal or child support payments.

which was higher compared to the rate of 53.5% in Ontario (Statistics Canada, 2013). When compared to Ontario and Canada, Ottawa had lower proportions of people earning low to middle income ranges (i.e., those that were in the lowest to the sixth decile groups) (Statistics Canada, 2013). Table 2. Distribution of population in private households by income decide group, Ottawa, Ontario, Canada, 2010. Population in private households by decile group of after-tax income adjusted for family size, 2010 Population in private households (count) In bottom half of Canadian distribution In lowest decile In second decile In third decile In fourth decile In fifth decile In top half of Canadian distribution In sixth decile In seventh decile In eighth decile In ninth decile In highest decile

Ottawa

Ontario

Canada

867,085 35.3% 8.5% 6.9% 6.3% 6.4% 7.3% 64.7% 8.7% 10.1% 12.3% 15.5% 18.0%

12,651,795 46.5% 9.3% 9.1% 9.3% 9.3% 9.5% 53.5% 9.8% 10.1% 10.7% 11.3% 11.6%

32,852,320 50.0% 10.0% 10.0% 10.0% 10.0% 10.0% 50.0% 10.0% 10.0% 10.0% 10.0% 10.0%

Income distribution shows variations across neighbourhoods in the city of Ottawa. According to the Ottawa Neighbourhood Study (2013), neighbourhoods with the highest percentage of households with the lowest after-tax income (i.e. below $20,000) are Beechwood Cemetery (33.1%), Carleton University (32.5%), Notre-Dame Cemetery (24.5%) and Lowertown (23.3%) and West Centretown (19.0%). Neighbourhoods with the highest percentage of households with the highest after-tax income (i.e. $125,000 and over) are Pierces Corners (21.7%), North Gower (19.5%), Crystal Bay – Lakeview Park (18.5%), Cumberland (18.1%), Orleans Avalon – Notting Gate – Fallingbrook – Gardenway South (18.0%), and Stittsville (17.9%) (Ottawa Neighbourhood Study, 2013). Low Income The low-income measure based on after-tax income (LIM-AT) is one measure that Statistics Canada uses to classify persons in by income status. The income threshold for this measure is defined as half the Canadian median of after-tax household income adjusted for household size (Statistics Canada, 2013). Persons living in households with a household income below this threshold are considered to be in low income (Statistics Canada, 2013). The incidence of low income in Ottawa, as measured by LIM-AT, was 11.7% in 2010 (Table 3). The proportions for Ontario and Canada were 13.9% and 14.9%, respectively. Across all age groups, Ottawa 3

had a lower proportion of persons in low income compared to Ontario and Canada. In Ottawa, the proportion in low income is highest for those aged less than 18 years. Table 3. Income status based on after-tax low-income measure (LIM-AT), Ottawa, Ontario, Canada, 2010. Income Status Total persons in private households for low income (count) Proportion in low income based on LIMAT Under 18 years 18 to 64 years 65 years and over

Ottawa 867,090

Ontario 12,600,230

Canada 32,386,170

11.7%

13.9%

14.9%

14.4% 11.7% 7.0%

17.3% 13.9% 8.3%

17.3% 14.4% 13.4%

From 1976 to 2009, Ottawa–Gatineau’ incidence of low income experienced fluctuations but was generally trending down. The incidence of low income reached an all-time high in 1996 and 1997 and declined over the following ten years. In 2008, low-income incidence increased compared to the previous year. The gap ratio under LIM also rose significantly in the same year. In 2009, however, the overall downward trend continued as low income dropped again slightly relative to that in 2008. (Statistics Canada, 2012) Neighbourhoods in Ottawa with the highest percentage of total population living in low income are Carleton University (43.9%), Beechwood Cemetery (43.8%), Ledbury – Heron Gate – Ridgemont – Elmwood (36.2%), Carlington (35.6%), and Notre-Dame Cemetery (35.5%). When examining low income neighbourhoods by age group, different trends emerged. Carleton University (53.7%), Ledbury – Heron Gate – Ridgemont – Elmwood (52.1%), Britannia Village (48.8%), Overbrook – McArthur (46.6%), and Vanier South (45.2%) are neighbourhoods with the highest percentage of population aged under 6 living in low income. Neighbourhoods with the most seniors (aged 65+) living in low income are Hintonburg – Mechanicsville (22.7%), Vanier South (22.7%), Lowertown (22.5%), West Centretown (22.4%), and Woodroffe – Lincoln Heights (15.8%). (Ottawa Neighbourhood Study, 2013)

Employment rate The employment rate of Ottawa residents observed a slight overall decrease from 65.0% in 1987 to 63.9% in 2013, with varying rates in between (see Figure 1). From 1987 to 2013, Ottawa’s rate has been consistently above the national average. Ottawa and Ontario shared a similar employment rate in 1987 (65.0% and 64.9%, respectively) but by 2013, Ottawa’s rate was higher than that of Ontario (63.9% vs. 61.4%). In Ottawa, the highest employment rate was observed in 1988 at 67.7% while the lowest was seen in 1995 where the employment rate was 59.1%. In the past decade, the highest employment rate occurred in 2008 at 67.6% while 2004 and 2013 share the lowest employment rate of 63.9%. The rapid 4

decline in employment rate in the early 1990s and following 2008 coincide with Canada’s economic recessions. Figure 1. Employment rate, Ottawa1, Ontario, and Canada, 1987-2013. 70

Employment rate, %

68 66 64 62

Canada

Ontario

Ottawa

56 54 52

Data presented for Ottawa, census division as defined by Statistics Canada.

Source: Statistics Canada. (2014). Table 282-0055 - Labour force survey estimates (LFS), by provinces, territories and economic regions based on 2006 Census boundaries, annual (persons unless otherwise noted), CANSIM (database). Retrieved from http://www5.statcan.gc.ca/cansim/a33?RT=TABLE&themeID=1803&spMode=tables&lang=eng

Unemployment rate Unemployment rate is a common measure of economic conditions and is an indicator of labour market security. Unemployment can create huge financial obstacles for individuals and their families, affecting their quality of life. Figure 2 presents the unemployment rates for Ottawa, Ontario, and Canada for the years 1987 to 2013. The unemployment rate is expressed as the percentage of the labour force aged 15 years and over unemployed in the week (Sunday to Saturday) prior to Census Day. The unemployment rate in Ottawa showed an overall decline from 6.9% in 1987 to 6.3% in 2013. Over this period, the unemployment rate experienced fluctuations, with a rapid increase in the early 1990s to 9.9% in 1995, followed by a steady decrease to an all time low of 5.0% in 2008. Since 2008, the rate climbed up again to the current 6.3%. The increases in unemployment rate in the early 1990s and following 2008, along with the decline in employment rate (previous section) during those periods, coincide with the economic recessions. The overall downward trend observed in Ottawa’s unemployment rate is similar to the unemployment rates for Ontario and Ottawa. Ottawa’s rate has

been consistently lower than the national rate. The Ottawa rate was higher than the Ontario rate in 1987 (6.9% vs. 6.1%) but in 2013, Ottawa’s rate was lower compared to Ontario (6.3% vs. 7.5%). Figure 2. Unemployment rate, Ottawa1, Ontario, and Canada, 1987-2013. 12

Unemployment rate, %

10 8 6 4

Canada Ontario Ottawa

2 0

Data presented for Ottawa, census division as defined by Statistics Canada.

Housing Affordability The Canada Mortgage and Housing Corporation uses “30% or more of before-tax household income” as a threshold to measure housing affordability (CMHC, 1996-2014). Of the total 353,240 households in Ottawa, 22.7% spent 30% or more of their household income on shelter-related expenses in 2011 (Statistics Canada, 2013). This is compared to 27.0% for Ontario and 25.2% for Canada. Between owner and tenant households, a lower proportion of owner households (14.9%) compared to renters (38.8%) paid 30% or more of their total income toward shelter costs (Statistics Canada, 2013). On average, households in Ottawa spent shelter cost of $1,237 per month, higher than the amounts of $1,181 and $1,050 per month for Ontario and Canada, respectively (Statistics Canada, 2013). Ottawa neighbourhoods with the greatest proportions of households exceeding the affordability threshold are Orleans Industrial (68.9%), Carleton University (59.1%), Bayshore (39.7%), Sandy Hill – Ottawa East (38.7%), and Ledbury – Heron Gate – Ridgemont – Elmwood (38.3%) (Ottawa Neighbourhood Study, 2013).

The Canadian Index of Wellbeing uses the RBC Housing Affordability Index as a measure of the capacity of Canadians to own a home. It shows the proportion of medina pre-tax household income required to service the cost of mortgage payments, property taxes and utilities on the various types of housing units â&#x20AC;&#x201C; detached bungalow, standard two-storey home, and a standard condo at the going market prices (RBC, 2013). A rise in the index indicates a decrease in housing affordability and a decline in the index indicates an increase in affordability. In other words, the higher the index value, the harder it is to afford a house. This measure is estimated on a quarterly basis for each province and some major cities including Ottawa. RBC measures for Ottawa for the second quarter of 2013 were 37.1% for a detached bungalow, 38.8% for a standard two-storey house, and 25.2% for a standard condominium. Compared to the average for Canada, the RBC affordability measure for Ottawa is lower in all three categories. With the exception of a standard condominium, the year-to-year affordability index saw an increase for a detached bungalow and a standard two-storey house. Food Security Household food security occurs when all member of the household have access to sufficient, safe and nutritious food to maintain an active and healthy life at all times (Statistics Canada, 2013). Food insecurity, on the other hand, occurs when there is insufficient quantity and/or quality of food (Statistics Canada, 2013). Hunger and lack of access to healthy foods have significant impacts on an individualâ&#x20AC;&#x2122;s health and wellbeing. These impacts range from poor mental and physical health outcomes including higher rates of diabetes and heart disease, to lower productivity, to nutrient deficiencies (Statistics Canada, 2013; Ottawa Public Health, 2013). In children, food insecurity has been associated with poor academic performance, difficulty concentrating at school and poor psychosocial outcomes (Ottawa Public Health, 2013). In pregnant women, food insecurity can have significant health impacts on the unborn child with an increased risk of low birth weight and neural tube defects (Ottawa Public Health, 2013). The proportion of households in Ottawa experiencing food insecurity is 8%. The level of food insecurity reported in Ottawa is similar to that reported for Ontario (8.2%) and nationally (8.3%). Since food quality and quantity are typically compromised when financial resources are limited, income is often considered when assessing food insecurity. Results from the Canadian Community Health Survey underscore the close link between food security and income. Specifically, the survey showed that as household income rises, food security also rises (Ottawa Public Health, 2012). The 2009/10 CCHS found that one-third of Ottawa households, or 33.0%, living below the Low Income Cut-Off were food insecure (Ottawa Public Health, 2012). Results of the 2013 Nutritious Food Basket Survey showed an increase of 6% in the cost to feed a family of four with nutritionally adequate foods, from $745 to $789 per month (see Table 4). The survey also showed that this increase worsens the problem of food insecurity among low income households, whose income from social assistance or minimum wage cannot provide for nutritionally adequate foods after paying rent, bills and other household expenses (Ottawa Public Health, 2013). 7

Table 4. Households on Fixed Incomes or Minimum Wage and the Cost of Living, Ottawa Ontario Works Single man aged 35

Ontario Works Single mother aged 35 with a boy aged 14 and a girl aged 8 $1,927

Ontario Works Family of four1

Ontario Disability Support Program Single man aged 35

Old Age Security/Guaranteed Income Supplement Single woman aged 71

One Fulltime Minimum Wage Earner Family of four1

$2,112

$1,167

$1,499

$2,711

$1,377 (3 bedroom) $789

$922 (1 bedroom) $221

$922 (1 bedroom)

$1,377 (3 bedroom)

$161

$789

-$54

$24

$416

$545

Monthly income Rent

$688

Cost of a Nutritious Diet2

$221

$1,130 (2 bedroom) $568

Whatâ&#x20AC;&#x2122;s left?3

-$291

$229

$758 (bachelor)

Monthly income includes additional benefits and credits. A family of four consists of a man and a woman, both aged 35, a boy aged 14, and a girl aged 8.

The Nutritious Food Basket Survey is a tool that calculates the cost of a nutritious diet in the City of Ottawa. The survey assesses the price of 67 standard food items from 10 grocery stores across the city. These food items reflect a healthy diet based on Canadaâ&#x20AC;&#x2122;s Food Guide. Their costs are averaged to determine the cost of a nutritious diet for a family of four in Ottawa.

These figures exclude money needed to cover costs such as transportation, utilities, phone, medical and dental costs, child care, laundry, clothing, and school supplies.

Source: Adapted from Ottawa Public Health. (2013). The Price of Eating Well in Ottawa 2013. Retrieved from http://documents.ottawa.ca/sites/documents.ottawa.ca/files/documents/price_eat_well_en.pdf

References City of Ottawa. (2001-2014). Social Assistance Services. Retrieved from http://ottawa.ca/en/cityhall/accountability-and-transparency/corporate-planning-and-performancemanagement/social-3. Community Foundation of Ottawa. Ottawa’s Vital Signs 2009 – The City’s Annual Checkup. Retrieved from http://www.cfo-fco.ca/wp-content/uploads/2012/04/VitalSigns09.pdf. Community Foundation of Ottawa. Ottawa’s Vital Signs 2006 – The City’s Annual Checkup. Retrieved from http://www.cfo-fco.ca/wp-content/uploads/2012/04/VS-Eng-2006-final.pdf. Conference Board of Canada. (2014). Income inequality. Retrieved from http://www.conferenceboard.ca/hcp/details/society/income-inequality.aspx. Health Canada. (2012). Household Food Insecurity in Canada in 2007-2008: Key Statistics and Graphics. Retrieved from http://www.hc-sc.gc.ca/fn-an/surveill/nutrition/commun/insecurit/key-statscles-2007-2008-eng.php. Ottawa Neighbourhood Study. (2013). Neighbourhood Maps – 2011. Retrieved from http://neighbourhoodstudy.ca/neighbourhood-maps-2011/. Ottawa Public Health. (2013). The Price of Eating Well in Ottawa 2013. Retreived from http://documents.ottawa.ca/sites/documents.ottawa.ca/files/documents/price_eat_well_en.pd f. Ottawa Public Health. (2012). Healthy Eating, Active Living and Healthy Weights, 2012. Retrieved from http://ottawa.ca/calendar/ottawa/citycouncil/obh/2012/0507/HEAL_Report2012_EN_Final_Updated_May072012.pdf. Public Health Agency of Canada. (2013). What Makes Canadians Healthy or Unhealthy? Retrieved from http://www.phac-aspc.gc.ca/ph-sp/determinants/determinants-eng.php#income. Sharpe, A. (2011). Living Standards – A report of the Canadian Index of Wellbeing (CIW). Waterloo: Canadian Index of Wellbeing. Statistics Canada. (2014). Table 282-0055 - Labour force survey estimates (LFS), by provinces, territories and economic regions based on 2006 Census boundaries, annual (persons unless otherwise noted), CANSIM (database). Retrieved from http://www5.statcan.gc.ca/cansim/a33?RT=TABLE&themeID=1803&spMode=tables&lang=eng. Statistics Canada. (2013). NHS Focus on Geography Series – Ottawa. Retrieved from http://www12.statcan.gc.ca/nhs-enm/2011/as-sa/fogsspg/Pages/FOG.cfm?lang=E&level=4&GeoCode=3506008.

Statistics Canada. (2012). Income Research Paper Series â&#x20AC;&#x201C; Low Income in Canada: a Multi-line and Multiindex Perspective. Retrieved from http://www.statcan.gc.ca/pub/75f0002m/75f0002m2012001-eng.pdf. Statistics Canada. (2007). Ottawa, Ontario (Code3506) (table). 2006 Community Profiles. 2006 Census. Statistics Canada Catalogue no. 92-591-XWE. Ottawa. Released March 13, 2007. Retrieved from http://www12.statcan.ca/census-recensement/2006/dp-pd/prof/92-591/index.cfm?Lang=E. Royal Bank of Canada (RBC). (2013). Housing Trends and Affordability, August 2013. Retrieved from http://www.rbc.com/newsroom/pdf/HA-0827-2013.pdf. Walks, A. (2013). Income inequality and polarization in Canadian cities: An examination and new form of measurement. University of Toronto, Cities Centre.

Appendix Table A1. A comparison between deadline indicators from the Living Standards domain of the Canadian Index of Wellbeing and the indicators presented in this report. Domain Living Standards

Canadian Index of Wellbeing Headline Indicators After-tax median income of economic families Income distribution – ratio of top to bottom quintile of economic families, after tax Incidence of low income (LICO) – % of persons in low income Long-term unemployment – proportion of labour force with long-term unemployment (The incidence of long-term unemployment is defined as the number of persons unemployed for 52 weeks or more over the number of persons unemployed) Employment rate – proportion of the population of working age that are employed Housing affordability – RBC housing affordability index Prevalence of Food Insecurity Job Quality – CIBC Employment Quality Index Economic Security – scaled value of CSLS Economic Security Index Wealth distribution

Indicators presented in this report After-tax median income of economic families Income distribution – proportion of economic families earning low, middle, top income ranges Incidence of low income – % of persons in low income as measured by after-tax low income measure (LIM-AT) Unemployment rate – proportion of the labour force unemployed in the week (Sunday to Saturday) prior to Census Day

Employment rate – proportion of the population of working age that are employed Housing affordability – RBC housing affordability index Prevalence of Food Insecurity