Canada Income Inequality: Montreal's Poor Fall Further Behind As Industrial Jobs Disappear

Posted: 04/12/2012 9:35 am Updated: 04/12/2012 10:15 am

Montreal has seen its middle class neighbourhoods shrink as industrial jobs disappear, but economic segregation is worsening at a slower pace than in Vancouver and Toronto, a new study shows.

Released exclusively to The Huffington Post Canada, the forthcoming paper draws on more than three decades of census data to show for the first time how shifting income patterns have reshaped Montreal’s neighbourhoods.

Labour market shifts, urban sprawl and gentrification have deepened the gap between rich and poor across the country, sometimes dramatically so. But Canada’s second largest city has not been divided along income lines to the same extent as other major urban centres.

More on income inequality at Mind The Gap:

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Indeed, Montreal remains a relative success story, even as the rise of a francophone economic upper middle class fuels urban sprawl, while the transition to the knowledge economy has left a large population of former industrial workers behind.

“The polarization that we see spatially is not nearly as extreme” as in other major cities, said author Damaris Rose, a professor at the Centre Urbanisation Culture, Société at Université INRS. “We’re fortunate to have a strong socio-economic mix, and also to have a strong ethnic mix — neighbourhoods that are really a mixture of non-immigrants and immigrants.”

But, she added, “we can’t be complacent about it.”

Check out our slideshow: Which Canadian Cities Are Experiencing The Fastest Ghettoization?

While the evidence may be less stark than in other major Canadian cities, rising income inequality has left its mark on the metropolitan area of Greater Montreal.

From 1970 to 2005, the proportion of middle-income neighbourhoods, or census tracts, on the island and surrounding suburbs shrank from about 64 per cent to 49 per cent. Meanwhile, there has been a significant uptick in the proportion of low-income neighbourhoods, which nearly doubled, from 18 per cent to 32 per cent. Very low-income tracts increased slightly from 2.5 per cent to nearly 4 per cent.


This chart shows that, while middle income neighbourhoods are still the most common kind in Montreal, they are declining as a percentage of all neighbourhoods. In 1970, nearly two-thirds of metropolitan Montreal's neighbourhoods were middle income; today, that number has dropped to below half.

The proportion of wealthy neighbourhoods remained relatively stable: high income tracts declined from around 8 per cent to 6.5 per cent; and very high-income tracts grew from 8 per cent to just over 9 per cent.

Similar studies revealed more significant shifts in the Toronto and Vancouver areas over the same time period, where the share of middle-income neighbourhoods dipped from two-thirds of all neighborhoods to less than one-third in both cities. (The change was less dramatic when looking at the entire metropolitan area of Greater Vancouver.)

Despite the fact that Montreal is more economically heterogeneous than these other urban centres — with middle-income neighbourhoods more likely to be found amid more affluent or poorer tracts — a closer analysis reveals that certain areas of the city are indeed moving in different directions.

Applying a technique that was used by the University of Toronto’s David Hulchanksi (and recently replicated in Vancouver) to distinguish between relative income winners and losers, Rose and her team divided Montreal neighbourhoods into three categories, which they called “cities.”

“City No. 1” consists of neighbourhoods where average individual incomes increased by more than 15 per cent above the metropolitan rate from 1970 to 2005. In Montreal, that accounts for 19 per cent of the region’s census tracts. On the island, these neighbourhoods tend to be clustered in long-established elite areas such as Westmount and Outremont, as well as heavily gentrifying districts like Old Montreal and the Plateau Mont Royal, where the housing market has experienced a significant lift.

Consistent with a pattern of urban sprawl, “City No. 1” also includes a near concentric ring of neighbourhoods in the outer suburbs, particularly in the eastern parts of the north and south shores, such as Varennes, Saint-Julie and Blainville, where a large number of middle-income people, predominantly francophones, have settled in recent decades.

“That really speaks volumes to the huge changes in Quebec society and the growth of an upper- middle income population in mainly francophone society,” Rose explained. “Traditionally in Montreal, the wealth was associated with English speakers. That’s really changed now.”

But while the push to create opportunities for the francophone population may have levelled the playing field in one regard, Rose says the effect of out-migration from the city has been “a hollowing out of old neighbourhoods in the centre.”

Consequently, many parts of the inner city now occupy “City No. 3,” neighbourhoods where incomes dropped by more than 15 per cent below the metropolitan rate. This category now makes up a total of 30 per cent of the region, though only three-fifths of these tracts are designated as low or very low-income. The remainder are classified as middle, high or very high-income, meaning that they’re still relatively well-off, but have experienced some decline.

While the truly struggling neighbourhoods of “City No. 3” can be found in the city’s post-war suburbs and older areas of the off-island suburbs of Laval and Longueuil, the most significant cluster is in north-east Montreal, where, the authors note, the continuous area of decline “now forms a strikingly large poverty concentration” made up of neighbourhoods that were primarily middle-income in 1970.

In Toronto and Vancouver, “City No. 3” is populated by a large and growing number of recent immigrants that are finding it harder to get ahead.

But according to Rose, immigration, while a contributing factor, has played a smaller role in the expansion of Montreal’s “City No. 3,” which is also populated by what she describes as “people who are left behind by the knowledge economy.”

“They are people who are not overly educated, who in the past were able to work in Montreal’s thriving industrial sector,” she said. “We’ve had a complete gutting of [those] jobs.”

The more stable “City No. 2,” where incomes stayed more or less in line with the city’s overall trend, encompasses 52 per cent of the region.

When it comes to why Montreal hasn’t experienced the same degree of polarization as other urban centres, Rose points to a few possible factors, including relatively good access to public transportation, strong community programs, affordable housing -- and a small number of head offices.

“Some people would say that Montreal is unlucky not to have a large class of the super-rich,” she said. “But perhaps that is an advantage, because it reduces the perception of extremes, and [the sense of] living in a place of huge disparities.”

Which Canadian Cities Are Experiencing The Fastest Ghettoization?

Loading Slideshow...
  • 8: Quebec City -- 22 per cent

  • 8: Quebec City -- 22 per cent

    With a 22 per cent increase in the gap between its richest and poorest neighbourhoods, Quebec City has seen the smallest growth in neighbourhood inequality. However, the city also saw the largest proportion of neighbourhoods in decline. The numbers suggest some six in 10 neighbourhoods saw their income decline from 1980 to 2005.

  • 7: Winnipeg -- 31.5 per cent

  • 7: Winnipeg -- 31.5 per cent

    Winnipeg saw a 31.5 per cent increase in the gap between its richest and poorest neighbourhoods from 1980 to 2005, with its poorest neighbourhoods suffering a 7.6 per cent decline, while its wealthiest 10 per cent of neighbourhoods saw income grow 24 per cent.

  • 6: Montreal -- 34 per cent

  • 6: Montreal -- 34 per cent

    Montreal saw a 34 per cent increase in the gap between its richest and poorest neighbourhoods from 1980 to 2005, with its poorest neighbourhoods suffering a 10 per cent decline, while its wealthiest 10 per cent of neighbourhoods saw income grow 24 per cent. <em>Correction: An earlier version of this text misidentified Montreal as Winnipeg.</em>

  • 5: Vancouver -- 36.5 per cent

  • 5: Vancouver -- 36.5 per cent

    Vancouver saw a 36.5 per cent increase in the gap between its richest and poorest neighbourhoods from 1980 to 2005, with its poorest neighbourhoods suffering a 10.5 per cent decline, while its wealthiest 10 per cent of neighbourhoods saw income grow 26 per cent.

  • 4: Ottawa -- 37 per cent

  • 4: Ottawa -- 37 per cent

    Ottawa saw a 37 per cent increase in the gap between its richest and poorest neighbourhoods from 1980 to 2005, with its poorest neighbourhoods growing 1.3 per cent in income, while its wealthiest 10 per cent of neighbourhoods saw income grow nearly 36 per cent. Ottawa is unique in that none of its neighbourhood deciles suffered an income decline during the period.

  • 3: Edmonton -- 39 per cent

  • 3: Edmonton -- 39 per cent

    Edmonton saw a 39 per cent increase in the gap between its richest and poorest neighbourhoods from 1980 to 2005, with its poorest neighbourhoods suffering a 7.8 per cent decline, while its wealthiest 10 per cent of neighbourhoods saw income grow 31.5 per cent.

  • 2: Toronto -- 68 per cent

  • 2: Toronto -- 68 per cent

    Toronto saw a 68 per cent increase in the gap between its richest and poorest neighbourhoods from 1980 to 2005, with its poorest neighbourhoods suffering a 5.5 per cent decline, while its wealthiest 10 per cent of neighbourhoods saw income grow 62.5 per cent.

  • 1: Calgary -- 81 per cent

  • 1: Calgary -- 81 per cent

    With an 81 per cent increase in the difference between its richest and poorest neighbourhoods, Calgary wins Canada's ghettoization crown. It's worthwhile to note that Calgary's large increases in income in the wealthiest neighbourhoods has not pulled up its poorest areas, which have seen declines in income on the same scale as low-end neighbourhoods in other Canadian cities.

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Montreal has seen its middle class neighbourhoods shrink as industrial jobs disappear, but economic segregation is worsening at a slower pace than in Vancouver and Toronto, a new study shows. Relea...
Montreal has seen its middle class neighbourhoods shrink as industrial jobs disappear, but economic segregation is worsening at a slower pace than in Vancouver and Toronto, a new study shows. Relea...
 
 
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HUFFPOST SUPER USER
cityprole
old,sly, crafty,arty, leftie
02:37 PM on 04/13/2012
To misquote Mark Twain.."There are lies, damn lies and statistics"...and having libved in Vancouver for many, many years, watching the city I used to love turn into LA without the history or grace, I fled as soon as I retired...
It is unrecognizable now, the real estate shift to the foreign wealthy beginning after the much locally boycotted Expo 86...well attended by tourists and the wealthy, looking for fresh new pastures to protect their economic interests..and so it began, and the fact that half the condos in the City are empty, wanting for what the speculators thought would be an ever-increasing market...and they'll wait even longer now...it has become completely unaffordable for anyone who is working class, or even middle class...the worst dump you wouldn't look at twice is going for 3/4 million..and that's in a lousy neighborhood.
Because Montreal is an older, and more eclectic and somewhat more progressive thinking, it's probably much better there for those who aren't wealthy by Vancouver standards. I would love to move there, frankly, but...can't afford either the move or the language lessons..wish I could.
SamEasy
You really don`t want to know.
04:00 AM on 04/13/2012
By the number of comments here, there are few Huffers who care about this so-called NEW information. I have called MTL a 'tourist town' for many years because every year around the May long weekend the City became busier with tour buses, etc. This would then flow right into the Grand Prix Week (it ain't a weekend gig) and then the Jazz Festival, and then the Just For Laughs, and then the Francofolies, etc. Then is September, each and every year, things died down. Like clockwork.

Fabulous place to visit, but not many companies will invest there for several reasons. The Universities play major role in keeping Montreal alive along with the 'joie de vive' that helps make it such a great city. Politics have been the nail in the coffin since 1976 for MTL and Toronto has benefited immensely from that.

C'est la vie...................Vive le Quebec libre......................
07:26 PM on 04/12/2012
Who's making the laws, who's making decisions on taxation for corporations and the 1%? That tells you who, the 1%.
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HUFFPOST SUPER USER
bbertaud
Je ne regrette rien, rien de rien
04:27 PM on 04/12/2012
In Quebec it doesn't really matter if the poor are getting poorer...the only thing that matters is that they speak French.....pauvre et Francophone...c'est chic
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HUFFPOST SUPER USER
Ascoli
07:46 PM on 04/12/2012
Your picture shows what you are......asleep
Wake up and get your facts and bigotry taken care of.
SamEasy
You really don`t want to know.
01:42 AM on 04/13/2012
The decline started in 1976 and it co-incided with which political event? This was the beginning of the fall of the Great City of Montreal................and a catalyst for the major growth of Toronto (the centre of the universe). I have seen BLATENT mistakes made by the government that sent MAJOR potential investors running for their lives. To sum it up, Quebec is NOT friendly to many industries but friendly to FEW. Too many examples to mention without a terrace and some beer.

It's political, plain and simple. Lived in MTL for 27 years and love the City. But they wanted a transer of wealth and they got it, so now live with the problems. Every time I hear mention of separation I start laughing because without a Net benefit transfer of payments, Quebec would be TOTALLY scr**ed.
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HUFFPOST SUPER USER
OH canada
02:43 PM on 04/12/2012
everything comes down to ...education... less educated country= less prosperity, less equality and so forth.

it is IMPERATIVE in the coming decade or two to ensure canada sees a rise in educated individuals that can outcompete, produce and invent products, services, businesses that outperform people in other countries

our education system is broken, children are not motivated to study and become professionals any more.
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HUFFPOST SUPER USER
PG13
02:06 PM on 04/12/2012
lets not forget that the 2 separatist referendums drove out a huge chunks of upper-middle class populations away and many corporate head offices moved away from Montreal to Toronto.

Mayor Jean Drapeau built Montreal while Quebec Premiere Rene Levesque built Toronto
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HUFFPOST SUPER USER
PG13
01:40 PM on 04/12/2012
the municipality has increased taxes ten folds since the arrival of mayor Tremblay.
Parking has become impossible under Tremblay, driving away families.

Provincially, services cut cut while fees get hiked and taxes remain high while wages stagnate.

It is the Quebec way
01:12 PM on 04/12/2012
Another cause of this disparity is the devide between public sector wages and private sector wages. Canada's public sector has unions that get them automatic yearly pay increases that are supposed to be for cost of living increases but which are often more than the cost of living. In addition, they get benefits & pensions that the private sector does not get or at least not to that level. Lastly, they generally have job security for life and almost never have to be a victim of continued corporate downsizing. I've seen studies that compare the same job in the private sector vs the public sector and including everything (wage & wage increases, benefits, pensions etc) the public sector job is 30% higher than the private sector.When will someone clue in that citizens in the private sector can't afford to keep the citizens in the public sector to the life they have become accustomed to.
01:48 PM on 04/12/2012
Sure there's more security and perhaps in some sectors higher pay, but still the gross majority of public workers do not constitute the top percentile of income earners!
01:58 PM on 04/12/2012
faliceemo, I would add that, sadly, ADToronto has fallen victim to the common refrain of the right wing: continue to knock the public sector (especially those "greedy unions") in order to increase the domain of corporations. I work as an ESL teacher at a private sector school. Instead of complaining about the public sector, we unionized and we're all the better off for it and the school continues to do very well. Unionize where possible, folks. Stop letting the rich speak for you: they don't. One more thing: as union membership has significantly decreased over the past 30 years, so has the middle class shrunk in proportion.
02:12 PM on 04/12/2012
Don't know what you are basing this on. Every Op Ed piece out there is talking about the disappearance of the middle classes and the gap between haves vs the have nots - hardly an indicator of public sector wages skewing the income pie. In fact, the average salary of a federal public servant is below $40K. Would you have them become working poor and deal with the fallout from little or no retirement pension as the boomers leave the work force? As to salary negotiations going beyond the cost of living, you must be dreaming. The days of unions getting big contracts has been replaced by outsourcing to private contractors, and bonuses to senior executives. Government workers are lucky if they can hold onto their jobs. Why so much enmity, AD? Why not go after the 1% who can never get enough?
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HUFFPOST SUPER USER
tmzrules
10:37 PM on 04/12/2012
what does Mcdonalds or Walmart pay? Teachers,cops,bus drivers?
01:08 PM on 04/12/2012
When will the left get it ?

do you know why income equaly Montreal/Toronto is getting worse ?

because for every Canadian that moves out of the middle class and starts finding real success or out of poverty/low income and into the middle class.

you have at least 10,000 immigrants with no understanding of the languages here, no education, and sometimes, no work ethic.

STOP importing hundreds of thousands of people from the third world into major Canadian cities and then complaining about inequality.

if someone is coming here.

if they can't speak English, and they can't speak French, and like many cases, they can't read and write in their NATIVE language.

DON'T let them come.

we should be bringing in Engineers from China and Singapore, not refugees and asylum seekers from Africa and the middle east.

And before you give me the usual "racist" garbage.

google my first and last name.
01:53 PM on 04/12/2012
Anyone of any ethnicity or gender can be a bigot and you are no exception.
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HUFFPOST SUPER USER
4evercanadian
Still my guitar gently weeps
06:35 PM on 04/12/2012
Most professions in Canada have associations (something akin to a union without calling it what it really is) and they are closed shops. I have known a number of engineers and medical doctors who have immigrated here and have been denied the right to practice because these associations refuse to recognize their qualifications.

Here is a link to a Readers Digest (yes, that right-wing leaning magazine) about the issues facing doctors: http://www.readersdigest.ca/health/healthy-living/why-canada-shutting-out-doctors
12:59 PM on 04/12/2012
Lame propaganda....
12:01 PM on 04/12/2012
I don't see how this is news or why Huffington had to get a 2005 "exclusive". It's all documented in English and French in "pourunquebeclucide.info" and named déclin tranquille.
11:53 AM on 04/12/2012
I have lived in Mtl, Toronto and Vancouver(Mtl last 6 yrs) and I can say that here
Most people supplement their income without paying taxes on it(work under the table)
Rent is 50% the price of Toronto
Electricity is 50% the price of Ontario
Less than 50% of couples married, yet share expenses(allows more tax credits and better benefits, yet may show 2 lower class singles, yet a couple doing well)
People here live much better than the nbrs say IMO
Just go down to Florida and Cuba in the winter, see the nbrs of Quebecers, as they can afford it
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freeSpeakr
I stand on the shoulders of giants
11:23 AM on 04/12/2012
Harper's socially perverse political ideology built on a base of greed, fear and the delusion of separation backstopped by an economic ideology built from continuous war, perpetual debt and planned obsolescence has condemned most formerly prosperous Canadians to a future of increasing hardship and penury, all so Mr. Harper's corporatist base can suck up more of the economic pie for themselves.

George knows; http://goo.gl/95x0c

Here's some of the evidence.

Profiteer or human person http://goo.gl/mLx96

Bursting Eugene Fama's bubble. http://mises.org/daily/4056

Who Rules America? http://goo.gl/7cS7J

http://thetyee.ca/Mediacheck/2005/11/29/HarperBush/ http://goo.gl/Yy9w

http://www.walrusmagazine.com/articles/the-man-behind-stephen-harper-tom-flanagan/

http://thetyee.ca/Opinion/2012/03/26/Harper-Evangelical-Mission/

http://soundcloud.com/post-hypnotic-press/lawrence-martin-harperland-the-politics-of-control-ready-by-michael-puttonen

http://www.youtube.com/watch?v=-6CT-I2Nw-o

http://goo.gl/837yI

http://goo.gl/LZAla

http://goo.gl/oGXwa

http://goo.gl/LcAFj

http://goo.gl/biFeU

Front Porch Pres in Fantino's office.

http://goo.gl/89TwE

http://goo.gl/jTaZU

http://goo.gl/JC7e9

http://goo.gl/FNKCO

http://goo.gl/yebjd

http://tinyurl.com/76ggfly
http://tinyurl.com/84fj9vc
http://tinyurl.com/73s9bk4
Anthropocan
Je est un Autre.
11:02 AM on 04/12/2012
This is a good analysis. Unfortunately, the data is from the 1970's to 2005. As in before the housing crisis. i would have liked to see some more recent figures.
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HUFFPOST SUPER USER
Overt Enigma
YOUR micro bio is empty
11:54 AM on 04/12/2012
That's not how this type of study works. It looks at trends over the given time period and it takes time to receive and compile data. If you're looking at this study as a marker for where we are today, you will not get a very accurate picture; therefore, these results should be viewed as a trend analysis. So, over the last 35 years (according to the study), this is a summary of income disparity.

What you can conclude from this is that the results are disturbing and, if the last 7 years continue this way, the disparity is even larger. Keep in mind that there are major factors that contributed to the income disparity both in the US and Canada - the most recent of which was the Global Financial Crisis that started in 2008. The largest changes in disparity happened after the bailout packages and failed mortgages. I would go so far as to postulate that the last 7 years would show a greater disparity change than the 35 years examined in this report. That is what you should be taking away from this type of study.
Anthropocan
Je est un Autre.
03:12 PM on 04/12/2012
Thank you for your comment. Yes, I think that's all fairly obvious: as I said, this is a good analysis. And I do know that this is part of a trend (which is why they chose to use data from the 1970's on). But you do bring up an interesting topic: "if the last 7 years continue this way, the disparity is even larger". Let's not kid each other, the disparity has gotten wider. All that I was bringing up was: how bad is it today? And especially in Montreal. As a resident of the city, I agree with the trend the study identifies but I'd like to know a bit more.
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HUFFPOST SUPER USER
piceaglauca
The picture says it all....
11:01 AM on 04/12/2012
With an 81 per cent increase in the difference between its richest and poorest neighbourhoods, Calgary wins Canada's ghettoization crown. It's worthwhile to note that Calgary's large increases in income in the wealthiest neighbourhoods has not pulled up its poorest areas, which have seen declines in income on the same scale as low-end neighbourhoods in other Canadian cities.
.
11:20 AM on 04/12/2012
Three Cheers for Calgary!
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HUFFPOST SUPER USER
Overt Enigma
YOUR micro bio is empty
11:57 AM on 04/12/2012
There is a growing myth that the upper echelon are job-creators. A study of this nature directly disputes that hypothesis for the reasons that you've stated: Rich are getting richer and the poor are either staying the same or falling further behind.
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HUFFPOST SUPER USER
piceaglauca
The picture says it all....
01:10 PM on 04/13/2012
Some argue that the increase in taxes brings us a better standard of living. It favours the middle class where the bulk of the income can be found. Unfortunately it squeezes out the bottom half and adds somewhat to the top half. I say it does too but it also allows us to hide our ghettoes in large complexes but the streets are clean. It is like the reserve system, out of sight, out of mind. If we didn't have running water and did have sewage in the streets then I say should we raise taxes even more? Then we could eventually hide the middle class.