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Let's Talk About Poverty

Poverty Fact Sheet #2

Produced by The Urban Poverty Consortium of Waterloo Region September 27, 2000

Who Are the New Canadians?
Anybody not born in Canada is considered a new Canadian, or an immigrant. Of course, "new" is a relative term and information cited in this fact sheet often will make reference to a period of immigration (see Table Two). A new Canadian's legal status can be that of citizen, landed immigrant or non-permanent resident. Non-permanent residents include foreign students, refugee claimants and persons having official authorization to work. Immigrants come to this country for a variety of reasons - to seek employment and investment opportunities, to be re-united with family and to escape war or persecution.[1]

The vast majority of people who immigrate to Canada come to Ontario. As of 1996, 2,787,030 immigrants and non-permanent residents lived in Ontario. Of that number, 86,370 newcomers - mainly from Europe, Asia, South America and Central America - settled in Waterloo Region. Immigrants and non-permanent residents comprise 21.56% of the total population of Waterloo Region.[2]

Newcomers to Canada see Waterloo Region as a desirable place in which to live. Officials with the Waterloo-Wellington office of Citizenship and Immigration Canada have noted that government-sponsored and group-sponsored immigrants arrive in Canada at various points of entry and often choose Waterloo Region as a preferred destination. Factors such as comprehensive community supports for immigrants and a relatively low unemployment rate may account for secondary migration to the three urban areas of Cambridge, Kitchener and Waterloo.

New Canadians and Poverty
New Canadians are more likely to be living in poverty and their experience of poverty can be of a longer duration than that of the general population.[3] This is particularly true of recent immigrants - whose period of immigration falls between 1990 and 1996 - and non-permanent residents. For the purposes of this fact sheet, Statistics Canada's Low Income Cut Off, or LICO, is being used to define poverty. Table One shows the LICO, based on family size, for Waterloo Region .

Table 1:
Low Income Cutoffs for Waterloo Region
Size of Family Unit Monthly Annual
1 person $1,244 $14,694
2 persons $1,555 $18,367
3 persons $1,934 $22,844
4 persons $2,342 $27,650
5 persons $2,617 $30,910
6 persons $2,893 $34,168
Source: Statistics Canada 13-551-XBP-1996

Almost 18% of all immigrants residing in Waterloo Region live below the LICO, as compared to 13.17% of Canadian-born residents. Non-permanent residents experience the highest rate of poverty - 44.54% in Waterloo Region live below the LICO. When compared to the national data, poverty rates are lower for new Canadians living in the three urban centers of Kitchener, Waterloo and Cambridge. [4]

Table 2:
Poverty Rates by Period of Immigration, Waterloo Region and Canada
Period of Immigration Before 1986 1986-1990 1990-1996
Waterloo Region 11.52% 24.92% 40.63%
Canada 17.29% 33.55% 49.93%
Source: Statistics Canada, 1996 (custom tabulations)

Table Two shows that poverty rates are lower in Waterloo Region than those for Canada for the three periods of immigration. Historically, immigrants have moved out of poverty the longer they stayed in Canada. This trend is reflected in both the local and national data. However, since 1989, a new trend has developed - the earnings gap between Canadian-born and new Canadian workers is wider.[5] This could indicate that new Canadians are facing greater challenges in achieving prosperity, apart from their more recent arrival in this country.

Contributing Factors
In a previous fact sheet, there was a brief examination of some of the factors that might contribute to poverty. These included a lower level of education, the tendency of unskilled jobs to pay less wages and the increasing number of single-parent families.

In Urban Poverty in Canada: A Statistical Profile, the Canadian Council on Social Development noted the following with regard to recent immigrants:

  • most recent immigrants enter Canada as skilled workers
  • recent immigrants are more likely to have completed post-secondary education
  • recent immigrant families are less likely to be headed by lone parents.

These factors should indicate less of a risk of living in poverty but this is not necessarily the case.

Table 3:
Poverty Rates of Total Population and Recent Immigrants, Waterloo Region and Canada
  Total Population Recent Immigrants
Waterloo Region 14.30% 40.63%
Canada 19.69% 49.93%
Source: Statistics Canada, 1996 (custom tabulations).
Recent immigrants refer to persons who gained landed immigrant status between 1991 and 1996.

Language and cultural barriers and a lack of knowledge around job-search techniques specific to a new community could explain a higher rate and a longer duration of poverty . Immigrants with academic, professional or trade qualifications often experience difficulty having foreign credentials recognized. As ability to communicate in a new language improves, problems related to the nuances of language, as used in the workplace, may sontinue to exist.

New Canadian Women
Depending upon country of origin, women who immigrate to this country may face additional barriers in their search for a better life. Immigrant women often need to seek paid employment, not only in order to support the immediate family but also family living outside of Canada.

According to the Waterloo Region Community Health Profile 1999, immigrant women are less likely than immigrant men to speak either of Canada's official languages - a significant obstacle to employment and access to community resources.[6] In a two-parent household where a traditional division of labor applies, women tend to be responsible for the care of any young children. This can mean that they have less time available to upgrade language and job-related skills.

For cultural or religious reasons, a certain form of dress may be required but may be considered restrictive for certain working environments. However, women may feel more constrained than men in modifying their attire, in cases where an employer is unable to make an accommodation.

Our Stories
These are true stories from New Canadians who have settled in Waterloo Region and know the kinds of barriers and opportunities that life in a new country presents.

"I am 26 and came to Canada as a refugee 5 years ago. My homeland has been completely destroyed and there is no government left there. My younger sister is developmentally challenged. She lives with me. When our family was attacked, we separated, and were dispersed to the four corners of the earth. My mother is in Holland with my younger sister, and we have lost my father. He is looking for us, obviously. I have a brother in the States.

"Whatever I do, I have to take care of my sister. I cannot leave her in the care of other people. I am responsible for her. Right now we are receiving Social Assistance, but I would like to get away from that and be able to work, and help my family. I don't know what to do with my little sister. If I get a job and I have to pay someone to take care of her, I will even be poorer than I am right now.

"And who will take care of her while I work? She needs special care and does not speak English. Don't tell me to send her to my relatives in Holland or the States; they will not take her. There has to be a way. By the time I use my social services allowance, I am left with nothing.

"I am young and healthy. I have a desire to work and make something better for myself. There has to be a better way."[7]

"I came to Canada as a refugee with my father. We survived on welfare in a city in Ontario. I had always done well in school and I had dreams of going to university. I applied and was accepted at the University of Waterloo.

"I arrived in Kitchener-Waterloo in January. I had no place to stay so I came to the House of Friendship. My father helped me put the money together for my tuition fees. But my student loan was delayed, so I had no money for food or lodging. Because I was a university student, I was ineligible for social assistance.

"I stayed at the hostel for two months as a guest. During that time, I walked the ten kilometers to university every day. Finally my student loan came through and I moved to my own place.

"A few months later I returned to the hostel to thank the staff for helping me. I was happy to tell them that my father had moved to join me and that I was earning a 90+ average in my science program."[8]

References

  1. Kevin K. Lee (2000). Urban Poverty in Canada: A Statistical Profile. Canadian Council on Social Development, p.31.<back>
  2. Statistics Canada, 1996 (custom tabulations).
  3. National Council of Welfare (1999). Poverty Profile 1997, p.84.<back>
  4. Statistics Canada, 1996 (custom tabulations).
  5. Kevin K. Lee (2000). Urban Poverty in Canada: A Statistical Profile. Canadian Council on Social Development, p.35.<back>
  6. The Waterloo Region Community Health Department (1999). Waterloo Region Community Health Profile: Indicators from the 1991 and 1996 Census of the Population, p.14.
  7. Kitchener-Waterloo Multicultural Centre, Personal Stories File (September 2000).
  8. House of Friendship (1999). Friend to Friend: Stories and Photos from the House of Friendship, Kitchener.

Poverty Fact Sheet Series

  1. What is Poverty?
  2. Immigrants (New Canadians)
  3. People who are disabled
  4. Seniors
  5. Working Poor
  6. Children
  7. Youth
  8. Sole Support Parents

For More Information...
contact the Urban Poverty Consortium of Waterloo Region:

Mark Cabaj Opportunities 2000
Trudy Beaulne SPC Kitchener-Waterloo
Gloria DeSantis SPC Cambridge & North Dumfries
Barb Powell Community Health Department
Bryan Embree Community Health Department
Terry Goodenough Community Health Department
Lynn Randall Social Services Department
Jean Latham Social Services Department
Paula Stuhlmacher Social Services Department
[email] [website]