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Earnings and Incomes of Canadians Over the Past Quarter Century, 2006 Census: Incomes of families
Share of income from government transfers down in most provinces and territories
Government transfer payments range from social assistance to Old Age Security Pension, Employment Insurance benefits, child benefits and Goods and Services Tax credits, among others. They provide a safety net against economic hardship for younger Canadians and a basic level of retirement income for older Canadians.
Between 2000 and 2005, the proportion of family income that came from government transfer payments declined slightly in all provinces and territories, except Quebec, Ontario and the Yukon Territory, where it edged up.
Nationally, government transfer payments accounted for 9.9% of total family income in 2005, down from 10.3% in 2000. In 2005 constant dollars, government transfer payments rose during this period, from $7,854 for each economic family on average, to $8,149, a 3.8% increase.
Families in Newfoundland and Labrador received $12,049, on average, in government transfer payments in 2005, the highest amount among all provinces and territories. These payments accounted for $19 of every $100 in before tax family income in the province, the highest proportion in the country.
In a number of jurisdictions, government transfers accounted for less than 10.0% of family income. They included Ontario (8.8%), Alberta (6.4%) and British Columbia (9.6%), as well as the Northwest Territories (6.0%) and the Yukon Territory (7.8%).
Table 19
Average total income and average government transfer payments, in 2005 constant dollars, of economic families, Canada, provinces and territories, 2000 and 2005
Among people living on their own, government transfer payments accounted for 16.8% of income in 2005, much higher than for economic families. Among the provinces, this proportion was highest in Newfoundland and Labrador (30.2%), Prince Edward Island (26.2%) and New Brunswick (25.1%).
In Alberta, government transfers accounted for only 10.7% of income of people living on their own, the lowest proportion among the provinces. In the North, the lowest share of income from government sources was in Nunavut (4.5%) and the Northwest Territories (6.7%).
Table 20
Average total income and average government transfer payments, in 2005 constant dollars, of persons not in economic families, Canada, provinces and territories, 2000 and 2005
