The most recent data from Statistics Canada’s National Household Survey (NHS) showed that median household incomes in B.C. grew by 14% over the past five years, from $52,709 in 2005 to $60,333 in 2010. While growth in B.C.’s median household income was on par with the national average (also 14%), inflation in B.C. over this period fell below the national average (10% versus 12%), so real household income growth in B.C. outpaced that of our Canadian counterparts. Even so, B.C.’s median household income remained below Canada’s ($60,333 versus $61,072).
Considering the data by income group shows that the number of B.C. households reporting incomes of above $60,000 grew, while the number reporting between $10,000 and $60,000 declined; all else being equal, growth in higher-paying income groups bodes well for B.C. households and the provincial economy. But the number of households falling into the lowest income group (under $10,000) also grew.
Income data for regions within B.C. shows significant variance across the province’s 29 regional districts. Relatively high median household incomes were seen in B.C.’s resource-rich regions, where the mining, oil and gas sector figures prominently into regional economic activity: the three regions with the highest median household incomes were the Northern Rockies ($82,605), Peace River ($76,982) and the East Kootenays ($66,049).
While the Northern Rockies and Peace River regions also topped the list in 2005, the East Kootenays leapfrogged into the top three by 2010, as its median household income increased by more than 25% over the past five years (the East Kootenays ranked eighth in 2005). The Peace River region also grew significantly, at 24%. The Central Okanagan rounded out the top three fastest growers at 18%.
The lowest median household income belonged to the Central Coast, which, despite an 18% increase over the past five years, had a 2010 median household income of $40,990.
Considering other data can help explain these changes.
For example, demographics, not economics, is a key driver in increasing the number of people in the higher-income categories (which contributes to a growing median income). As with many other provinces, the fastest-growing age group in B.C. from 2006 and 2011 was between the ages of 55 and 64, driven by the aging of the post-Second World War baby boom generation born between 1946 and 1965. So, in part, growth at the income spectrum’s upper end has been the impact of more people aging into what is traditionally the highest paying stage of a person’s working career. One would expect that a region like the East Kootenays with such growth in median incomes would also have robust employment growth. But total employment in the East Kootenays declined between 2006 and 2011 (by 0.4%). If we consider the composition of employment change by sector, however, employment growth was concentrated in sectors that are generally associated with higher incomes: on an absolute basis, health and social services added 535 jobs, and mining, oil and gas generated 470 more jobs. The growth of these industries is important because they each represented 10% of this region’s total employment.
While the addition of the jobs at the upper end of the earnings spectrum is a positive trend, other sectors experienced declines: retail (385 fewer jobs) and accommodation and food services (400 fewer jobs). These two sectors accounted for one-fifth of the region’s employment. While representing a smaller share of regional employment (5%), manufacturing declined by a whopping 31%, as 670 jobs were lost.
Hence, it is the underlying composition of people and jobs in the province that appears to be a contributing factor to rising median household incomes. •
