WHAT WE DO

Myth: “Welfare families” get more and more government handouts all the time.

Reality: In Calgary, there were 72,577 individuals living in poverty who were not receiving funds from any of the government income support program.

(Source: Calgary and Region Social Outlook 2007- 2012)

Myth: If the economy remains strong, the situation will improve.

Reality: Poverty often remains persistent over time: in 2004, more than 26,000 Alberta families with at least one full-time earner had been living in low-income households for three years or more. Rapid increases in housing prices and rental units in Calgary make it difficult for people experiencing poverty to find and sustain affordable housing. If rents continue to increase and rental stock continues to decrease, approximately 19,000 households in Calgary will be at risk for homelessness by 2008.

(Sources: Statistics Canada, Survey of Labour and Income Dynamics SLID 1999-2004; Calgary Socio-economic Outlook 2005-2015)

Myth: People living in poverty do not have a job.

Reality: Right now, half of all Calgarians who are homeless have a jobs, but are not earning enough to afford housing. In 2006, 40 percent of people who access food banks reported wages as a source of Income.

(Source: Calgary and Region Social Outlook 2007-2012)

Myth: A strong economy means that Albertans and Calgarians are wealthy.

Reality: In 2004, the richest 10 percent of Alberta’s families had $13 for every $1 had by our poorest families. While Alberta’s unemployment rate is currently among the lowest in the country, in 2004 there were almost 65,000 full-time workers in Calgary over the age of 15 with earnings below the Low Income Cut-Off (LICO). The reality is that some social groups are disproportionately affected by poverty: aboriginal children, children who are visible minorities and immigrant families are two to three times more likely than the general population to experience poverty.

(Sources: Statistics Canada, Income Trends, 2004; Statistics Canada, 2005, Canadian Labor Market at a Glance; Statistics Canada, Canada Census, 2001)

Myth: Poverty could be greatly reduced if homeless people just got a job.

Reality: Homeless doesn’t always mean jobless. About half of the people using shelters are employed, but a shortage of affordable housing makes it hard for these “working poor” to find anywhere else to live.

Myth: Poverty is only an issue for the poor.

Reality: Between 120 and 200 young people fail to complete high school because of poverty each year. Youth who do not complete their high school education are more likely to end up in low paying jobs and to experience repeated spells of unemployment. At a cost of $37,560 in social spending costs for each young person in Calgary who does not complete high school, the total annual cost is between $4.5 million and $7.9 million.

(Source: Sheill & Zhang, 2004, The External Costs of Poverty)

Myth: Alberta workers make higher wages than workers in other provinces.

Reality: In Alberta in 2004 there was a 2.3 percent increase in hourly wages. The national average was 2.5 percent. (2006 Socio-Econ Outlook refutes this on pg 125: "Growing labour shortages have also resulted in increasing average hourly wages. Nationally, hourly wages grew by 3.2 percent in 2005 (Cross, 2006). In Alberta, the average hourly wage increased by 8.7 percent from $19.68 / hour in 2003 to $21.39 in 2005 (Government of Alberta, 2005)." In fact, Alberta (and Newfoundland) has the lowest minimum wage in Canada.

Myth: Self-employed workers are wealthy professionals.

Reality: Self-employed people are at a greater risk of working for low wages than salaried individuals. In Calgary, in 2003, the average income of a self-employed person was $22,700 in comparison to $36,300 for non-self-employed individuals. On average, self-employed people are as poor as the non-working poor.

(Sources: Human Resources and Social Development Canada, 2006, When Working is not Enough to Escape Poverty: An Analysis of Canada’s Working Poor; Calgary Socio-Economic Outlook, 2005-2015)

Myth: Full-time workers earn enough to support themselves and their families.

Reality: Poverty often persists. In 2004, more than 26,000 Alberta families with at least one full-time earner had been living in low-income households for three years or more. That same year, almost 60 percent of Alberta children living in poverty lived with at least one parent who was working full time.

(Sources: Statistics Canada Survey of Labour and Income Dynamics, 2005; Canadian Policy Research Networks, 2007 Workers in Low-Income Households in Alberta)