New report challenges misconception that poverty doesn’t happen to people who work
A new report, Poverty segmentation: The challenge of the “working poor,” pushes back against the widely held belief that poverty only affects those who are unemployed. The research reveals that the largest group of people living in poverty in Canada are working or live in families who work.
The report’s key finding is a critical wake-up call for policymakers: Forty-two per cent of people who live in poor families in Canada fall into the working poor category, making them a larger segment than welfare poor families. The data clearly suggests that work alone is not enough to escape poverty in Canada.
“Many people probably think that poverty doesn’t happen to people who work,” says report author Gillian Petit, a research associate at the University of Calgary. “But the reality is that many people living in poverty live in working poor families and can’t afford food, housing, and other essentials.”
To accurately capture the realities of this segment of the population, the report proposes an updated definition for the “working poor.” Existing Canadian definitions are often outdated and inconsistent, potentially setting the bar too low or excluding people with disabilities or caregiving responsibilities.
The report urges policymakers to recognize the working poor as the largest group in poverty and design supports for them that are adequate and accessible. Recommended policy responses include strengthening employment regulations and encouraging employers to provide higher wages and better working conditions.
The research further highlights that while the working poor are the largest group among people in poverty, significant attention is needed for other vulnerable groups, including improving income supports for persons with disabilities and those who are approaching retirement age and lack sufficient savings.
Ultimately, the report emphasizes: To make real progress on poverty, we must ensure that work pays enough to live with dignity.