
A study from l'Université de Montréal's business school HEC Montréal has concluded that the income gap is widening between Quebec and wealthier parts of Canada – and that Quebec could be the poorest province in the country within a decade.
The research conducted by HEC's Centre for Productivity and Prosperity found that between 1978 and 2009 net average household income gains in all other provinces outstripped Quebec's gains.
In 2009, the last year the study looked at, the average resident of Newfoundland and Labrador – traditionally Canada's poorest province – earned just $3,127 less than the average Quebecer, while an Albertan averaged $17,947 more than someone living in Quebec.
"I'm not really surprised...Albertans are earning more than Quebecers. This is something we expected," said the study's author, HEC professor Martin Coiteux. "What is more worrisome is the trend."
If that trend continues, Coiteux said, "within ten years, Quebec would be the poorest province in Canada."
Living costs going up
Quebecers already pay the highest provincial taxes in the country, but they have generally consoled themselves with the belief the cost-of-living is lower in the province.
Coiteux said that is still true, but costs for necessities such as food and housing are increasing faster in Quebec than elsewhere.
"This advantage is about to disappear," Coiteux said.
Even with the lower cost of living in Quebec, Quebecers had, on average, $2,891 less to spend than Albertans in 2005. By 2009, Coiteux found that gap had ballooned to $13,352.
Coiteux said fiscal arrangements to redistribute wealth cushion the impact of Quebecers' lower earnings. Because Quebecers take home less money, they pay less in federal taxes and receive more by way of transfer payments from Ottawa.
Study finds productivity is key
Quebec's relative poverty can be blamed fundamentally on its lagging labour productivity, Coiteux said.
Quebecers' rate of participation in the workforce is lower than in other provinces, and people in the province work fewer hours per week, earn less per hour worked – and retire earlier, too.
"It's not that people are not working hard," Coiteux noted. "We are occupying positions that are not paying a lot of money – on average – compared to the richest provinces. And that shows a problem with the qualifications of the labour force."
The challenge, Coiteux added, is "adapting our young people, especially, in terms of their skills, to the kinds of jobs that are paying a high income."
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Highlights Of The 2011 Census
Here are some highlights from the 2011 Canadian Census.
With files from <em>The Canadian Press</em>. (AFP/Getty Images)
33,476,688 People
As of May 2011, 33,476,688 people were enumerated in Canada, nearly twice as many as in 1961 and 10 times the number in 1861. (Alamy)
Population Growth Speeds Up
Canada's population grew by 5.9 per cent between 2006 and 2011, up slightly from 5.4 per cent during the previous five years. (<a href="http://www.flickr.com/photos/jtbradford/" target="_hplink">Flickr: jtbradford</a>)
Go West
For the first time, more people in Canada live west of Ontario (30.7 per cent) than in Quebec and Atlantic Canada combined (30.6 per cent). (Flickr: <a href="http://www.flickr.com/photos/derekgavey/" target="_hplink">derekGavey</a>)
We're Number One
Canada's population growth between 2006 and 2011 was the highest among G8 countries. (<a href="http://www.flickr.com/photos/33498942@N04/" target="_hplink">Flickr: WarmSleepy</a>)
Exceptions To The Rule
Every province and most territories saw their population increase between 2006 and 2011; the rate of growth increased everywhere except in Ontario, the Northwest Territories and Nunavut. (AP)
Ontario Falters
The growth rate in Ontario declined to 5.7 per cent, its lowest level since the early 1980s. (Alamy)
Saskatchewan Out Of The Red
Population growth in Saskatchewan hit 6.7 per cent, compared with a negative growth rate of 1.1 per cent between 2001 and 2006; the province welcomed more than 28,000 immigrants during the latest census period, nearly three times the number of the previous five-year period. (<a href="http://www.flickr.com/photos/justaprairieboy/" target="_hplink">Flickr: Just a Prairie Boy</a>)
Yukon And Manitoba Take Off
The rate of growth in both Yukon (11.6 per cent) and Manitoba (5.2 per cent) has doubled since 2006. (<a href="http://www.flickr.com/photos/us_mission_canada/" target="_hplink">Flickr: US Mission Canada</a>)
The East Is Growing Too
The rate of growth in Prince Edward Island (3.2 per cent), New Brunswick (2.9 per cent) and Newfoundland and Labrador (1.8 per cent) has increased substantially between 2006 and 2011. (<a href="http://www.flickr.com/photos/jw1697/" target="_hplink">Flickr JaimeW</a>)
Cities Rule..
Nearly seven of every 10 Canadians lived in one of Canada's 33 main urban centres in 2011. (<a href="http://www.flickr.com/photos/markwoodbury" target="_hplink">Flickr mark.woodbury</a>)
.. Except Not In Ontario..
The rate of population growth in almost all census metropolitan areas located in Ontario slowed between 2006 and 2011. (<a href="http://www.flickr.com/photos/husseinabdallah/" target="_hplink">Flickr abdallahh</a>)
Maybe Because Everyone Moved To Alberta
Of the 15 Canadian communities with the highest rates of growth, 10 were located in Alberta. (AFP/Getty Images)
First Posted: 02/ 7/2012 9:53 pm Updated: 02/10/2012 8:35 pm