Last week, two important reports were released: the N.L. Vital Signs Report and Food Banks Canada’s 2024 Poverty Report Cards. Both highlight data specific to poverty and the cost of living in Newfoundland and Labrador.
N.L. Vital Signs Report Highlights
N.L. Vital Signs is an annual check-up on the quality of life in Newfoundland and Labrador communities. The theme of this year’s report is something that we are all too familiar with: the cost of living.
In the report, N.L. Vital Signs highlights food, income, and housing as three areas that are central to the ongoing affordability crisis. The report also includes regional data profiles for communities across the province. This regional data can help us understand how things like housing and income inequality are affecting people in different parts of Newfoundland and Labrador:
Unsurprisingly, monthly shelter costs are highest in the Avalon region for both owned and rented homes, where the median cost to own a home is $1,070/month and the median cost to rent a home is $930/month. The North Coast of Labrador (Nunatsiavut) has the lowest monthly shelter costs in the province, where the median cost to own a home is $332/month and the median cost to rent a home is $564/month. Median monthly shelter costs across the rest of the province range from $412-960/month for owned households and $680-900/month for rentals.
The region with the highest rate of home ownership in the province is the Great Northern Peninsula, where nearly every 9 in 10 homes are owned (as opposed to rented). This region also had the lowest rate of home rentership.
The regions with the highest rate of home rentership are the Northeast Avalon and Central, where nearly 1 in 3 households are rented (as opposed to owned).
Folks living in the Rural Avalon region typically spend the most amount of time commuting to and from work, with nearly every 1 in 4 households (23%) travelling more than 45 minutes.
In 9 of the 12 regions of the province, about 1 in every 5 households earn less than $30,000/year after taxes.
The Labrador region has the highest proportion of high-income households, where nearly 1 in every 2 households earn at least $100,000/year after taxes. In the Northeast Avalon and Nunatsiavut regions, high-income earners make up close to 1 in 3 households. For the rest of the province, this number drops to less than 1 in 4.
In NL, 33% of households that rent their home and 9% of households that own their home spent more than 30% of their income on shelter in 2021
20.4% of households in NL are facing housing insecurity due to affordability (the housing is not affordable or costs more than 30% of their income), adequacy (the housing needs major repairs), or suitability (the housing is not suitable for the size and make-up of the family).
Affordability is a major concern for the Avalon region of the province, whereas housing adequacy is a serious issue faced by many living in Nunatsiavut.
In addition to this regional data, the report also highlights the climbing cost of making a simple family meal and dessert now versus five years ago: A pot of beef stew and a simple vanilla cake costs around 41% more to make and share with family and friends in 2024 compared to 2019.
To read the full report and dive deeper into the quality of life in N.L., visit the N.L. Vital Signs’ website or read the full PDF.
N.L. Poverty Report Card Highlights
Overall, Newfoundland and Labrador once again received a D- grade on the poverty report card – on par with the new national grade and just slightly better than a fail. Although the province’s overall grade hasn’t shifted since the last round of poverty report cards was released in September 2023, there are some notable shifts in the data that are worth talking about:
Experiences of poverty: F (down from a D+)
Including an F grade for “People Feeling Worse off Compared to Last Year” (down from a C-), “People Paying More than 30% of Income on Housing” (down from a B-), and “People Having Trouble Accessing Healthcare” (down from a C-).
Measurements of poverty: D- (no change from 2023)
Including an F grade for “Poverty Rate” (down from a D-), “Food Insecurity Rate” (no change from 2023), and “Unemployment Rate” (no change from 2023).
Material deprivation: F (down from a D-)
Including an F grade for “Severely Inadequate Standard of Living” (down from a D+).
Government progress on passing anti-poverty legislation: B (up from an F)
As usual, the Report Card contains a wealth of information. We highly recommend visiting the N.L. Poverty Report Card and spending some time just clicking through the information.
What does this mean?
These data tell us that people in different regions of N.L. are experiencing serious differences in housing affordability, employment opportunities, and income levels. Policy interventions must be designed to address these regional differences and improve the quality of life for folks across the province.
These data also tell us that experiences of poverty for Newfoundlanders and Labradorians have grown considerably worse over the past year. All indicators in this section of the poverty report card received a failing grade (F).
1 in every 2 people reported feeling worse off compared to last year.
2 in every 5 people reported paying more than 30% of their income on housing.
1 in every 3 people reported having trouble accessing healthcare in the province.
1 in every 2 government support recipients said the rates are not sufficient to keep up with the cost of living.
Poverty measures for the province are also no better than in 2023. Three of the five indicators in this section of the report card received a failing grade (F).
1 in every 10 people live below the official poverty line (MBM).
1 in every 10 people is unemployed (N.L. is the only province with an unemployment rate in the double digits at 10.1%).
1 in every 5 people are food insecure.
According to the Material Deprivation Index, N.L. has the worst standard of living in the country.
More than 1 in every 3 people reported experiencing a severely inadequate standard of living. This means that they are missing three or more items that are considered necessary for a decent standard of living (e.g., a pair of properly fitted shoes and at least one pair of winter boots, access to transportation, and the ability to pay bills on time).
Nearly 1 in every 2 people reported experiencing an inadequate standard of living. This means that they are missing two items that are considered necessary for a decent standard of living.
Likely the only reason N.L. didn’t receive an F grade overall was because of the Poverty Reduction Plan announced by the provincial government late last year.
Because of this, the province’s grade for legislative progress improved to a B (from an F in 2023). However, how N.L. fares on the next poverty report card will depend on how the plan is carried out and the impact of the support it promises.
Overall, rising food costs, a lack of affordable housing, inadequate wages, and more, all contribute to the rising rates of poverty and food insecurity in N.L.
Where do we go from here?
While the provincial government has announced plans for a new poverty reduction strategy, we must hold them accountable for what they’ve announced. Food Banks Canada recommends N.L. adopt meaningful targets for measuring poverty reduction to ensure the strategy is benefiting the people it is meant to. Gathering and using feedback from the folks being supported will also be crucial for monitoring and evaluating the new strategy.
As the cost of living crisis grows, we must make sure that the poverty reduction measures in the province also expand. This means minimizing access barriers and rolling out changes and programs in a way that benefits as many people as possible. It could also mean increasing the minimum wage to a living wage, indexing benefits and income support rates to inflation, and expanding the proposed basic income program or implementing more of them to support a wider range of people. Whatever the income-based policy, it must also work with policies around housing and affordability. By and large, if we want food to be recognized as a human right in N.L., radical systems change is needed.
