The table below contains more information regarding the indicator.
| Indicator name |
Poverty rate, as measured by Canada’s official poverty line |
|---|---|
| Target |
By 2030, a 50% reduction in the rate of poverty, compared to the 2015 level |
| Indicator description |
This indicator measures the percentage of persons in low income using the Market Basket Measures (MBM), which was adopted as Canada’s Official Poverty Line. According to the MBM, a family lives in poverty if it does not have enough income to purchase a specific basket of goods and services in its community. |
| Geographical coverage |
Canada and provinces |
| Unit of measurement |
Percentage |
| Calculations |
The Market Basket Measure (MBM) is based on the cost of a specific basket of goods and services representing a modest, basic standard of living. It includes the costs of food, clothing, shelter, transportation and other items for a reference family. These costs are compared to the disposable income of families to determine whether or not they fall below the poverty line. |
| Comments and limitations |
It covers all individuals in Canada, excluding persons living on reserves and other Aboriginal settlements in the provinces, the institutionalized population, and households in extremely remote areas with very low population density. Overall, these exclusions amount to less than 2 percent of the population. |