Majority of families working harder, less payoff
TORONTO, March 1 /CNW/ - Canadian families are putting in more work time,
yet most -- 80% of them -- are getting a smaller share of Canada's growing
economy, says a study by the Canadian Centre for Policy Alternatives (CCPA).
The study finds Canada's income gap between the rich and poor is growing,
largely because the lion's share of Canada's economic growth is going to the
richest 10% of families. It's not going to the majority, the 80% of families
earning under a $100,000.
"Canada's gap is growing at a time when Canadian families are playing by
all the rules - working harder, contributing to a growing economy - but most
aren't getting payback," says study author Armine Yalnizyan, research fellow
with the CCPA.
The study, The Rich and the Rest of Us: The Changing Face of Canada's
Growing Gap, looks at the earnings and after-tax incomes of Canadian families
raising children under 18, comparing families in the late 1970s and those in
the early 2000s. The study finds:
- Canada's income gap is growing: In 2004, the richest 10% of families
earned 82 times more than the poorest 10% -- almost triple the ratio
of 1976, when they earned 31 times more. In after-tax terms the gap
is at a 30-year high.
- Bottom half shut out: Between 1976-79 the bottom half earned 27% of
total earnings. Between 2001-04 that dropped to 20.5%, though they
worked more. Up to 80% of families lost ground or stayed put compared
to the previous generation, in both earnings and after-tax terms. The
poorest saw real incomes drop.
- Work is not enough: All but the richest 10% of families are working
more weeks and hours in the paid workforce (200 hours more on average
since 1996) yet only the richest 10% saw a significant increase in
their earnings - 30%.
To get the report, see Canadian Centre for Policy Alternatives'
For further information:
For further information: Trish Hennessy, director of the CCPA's Growing
Gap Project, w (416) 263-9896, c (416) 525-4927