CANMORE – The income inequality for the haves and have-nots in Canmore has long been a hot discussion topic.
And a Statistics Canada metric is providing further information that it’s not in anyone’s imagination.
The Gini index – or Gini coefficient – is a metric that measures income inequality and shows values between 0 and 1 with a larger value meaning the more income inequality. For the second consecutive census, Canmore registered as having the most unequal distribution of wealth among urban centres in Canada.
“When you have a place as attractive as Canmore that is also a tourism-based economy, you attract a wide diversity of people,” said Mayor Sean Krausert. “You have those who will work on the front lines of the hospitality industry and you’ll have those who own multiple homes around the world. You have those who live on a very modest means and those who have a lot of personal resources. That gives you that Gini Index score.”
Canmore came in at a score of 0.35, which dropped from 0.422 during the 2016 census. The dip shows a slight reduction in inequality, which Statistics Canada data shows can largely be attributed to many of the government financial transfers available during the COVID-19 pandemic.
Zuelin Zhang, a senior research analyst at the Centre for Income and Socioeconomic Well-being Statistics Division at Statistics Canada, said the biggest factor in seeing a reduction in inequality was government transfers during the pandemic.
“If you rank people from income from low to high, the people who received those benefits were mostly from the lower part,” he said. “When people with lower income see their income rise, inequality will go down.”
Zhang said he wasn’t specifically familiar with Canmore policies, but that those changes can impact the growth or reduction in inequality.
“Any policy changes would affect the income of lower-income people, vulnerable people could see a reduction in inequality. … In general terms, whenever there are policy changes to help you will be able to see the reduction in inequality,” he said.
Krausert said Town policies have attempted to address affordability concerns.
Initiatives include increasing transit routes and offering them for free, programming through Family and Community Support Services and looking for housing initiatives to help residents and increasing inventory for Canmore Community Housing.
However, the largest issue continues to be the supply and cost of land. During its strategic plan, council supported pushing upper levels of government in assisting the municipality with its housing crisis.
“This isn’t new for Canmore. … We’ve long been engaged in increasing the affordable housing inventory, but we need to take it to the next level and try to move at a greater rate and taking a look at provincial and federal discussions to determine any land available for the Town to do so,” Krausert said. “It will affect our build costs, which affects the price for the renter or the buyer.”
Zhang noted Canmore’s population also grew since the 2016 census, but the biggest growth rate were ages 25 to 29 with an 18.8 per cent increase. There was up to a 51.5 per cent jump for 65 and up.
“Even though their income is low, they’re not necessarily poor,” he said. “We have a good established social safety net such as CPP, OAS and employer sponsored pensions.”
Zhang added the proximity to Calgary and the draw of the mountains would likely also play a part, but there was no hard evidence.
“I suspect given the closeness to Calgary, common sense would suggest there are some people who use it as the backyard for people with very high income,” he said. “That would probably explain why the overall high Gini index is in Canmore.”
Canmore, Banff and MD of Bighorn all saw slight increases in household after-tax incomes, despite it declining in Alberta and were still well above the national average. In Canmore, the median household after-tax income was $92,000 in 2020 compared to $91,000 in 2015.
According to Statistics Canada, the Gini index of household after-tax income showed the country fell from 0.342 in 2015 to 0.302 in 2020. It served as the largest decline in any five-year period since 1976.
Alberta also had the largest decline, going from 0.371 in 2015 to 0.307 in 2020.
Canmore had an increase in government income programs during the pandemic grow from 0.4 per cent to 5.2 per cent for an increase of 13 times. Alberta grew from one per cent to seven per cent and Canada 2.1 per cent to 7.5 per cent, which while higher than Canmore, were lesser percentage increases.
Canmore council identified affordability as one of the most pressing issues when it approved the 2023-26 strategic plan in June.
The plan raised affordability, livability, the environment and building relationships as key issues to focus on during council's term.
As part of the approval of the plan, council called on the federal and provincial governments to help in providing land, policy changes and funding to add to the affordable housing in Canmore.
Council and senior Town staff held a workshop to look at potential actions the Town can do – which is often limited as a municipality – and have staff return with potential plans to move forward.
During its 2022 budget, council approved additional revenue from paid parking to increase weekday and Sunday service for free public transit. A policy planner position was also created to focus on the downtown area redevelopment plan and the Palliser area structure plan; the latter will focus on potentially adding significant amounts of affordable housing to the Town’s inventory.
According to Statistics Canada, 8.3 per cent of Canmore’s population have experienced low income for between 0 to 17 years, while Banff was 7.2 per cent and Bighorn 4.6 per cent.
The prevalence of low income in 2020 was 7.1 per cent for Bighorn, 6.5 for Canmore and 6.4 for Banff.
Low income is defined by the government if a household is below 50 per cent of median household incomes. For example, in a community of 30,000 people or less, $16,515 is for one person, $20,101 for a household of two, $25,029 for a household of three and up to $39,435 for a household of six. The income rates gradually increase the larger a population centre becomes.
Krausert said he didn’t necessarily believe affordability is entirely reflected in the Gini Index, but the municipality’s main goal is addressing those issues for residents. The answer – or improvement – ultimately lies in all those in the town.
“There are organizations that encourage living wage and businesses who participate in those will get perks, so that’s obviously something of interest,” he said. “Encouraging businesses on the benefits of paying staff closer to living wage through retention, customer loyalty and being able to open longer hours.
“Through those efforts, I would hope we would affect affordability. I’m not certain it will change the great diversity in income because of the attractive nature of the valley to those who have a lot of resources. If you’re going to choose any place in the world to be it might as well be in the most beautiful.”
BY THE NUMBERS
The July 13 release of census data found household after-tax income growth among lower-income households was faster due to government COVID-19 benefits.
However, Statistics Canada tax data found the largest earning declines were in sectors such as accommodation, food services and arts and entertainment – all economic drivers in the tourism driven Bow Valley – as the median earnings fell about 25 per cent from 2019 to 2020 in those sectors.
When it comes to pandemic support, Banff had the highest in the region with 74 per cent of its population collecting some form of COVID-19 financial assistance in 2020. The tourism town was devastated throughout the pandemic – with travel often recommended against for most of two years – but it was especially catastrophic in the initial months.
Alberta had 62.3 per cent of its population receive COVID-19-related benefits, which was below the national average of 68.4 per cent. Canmore and Bighorn were each below the national and provincial average with 60 and 58 per cent, respectively, in 2020.
The highest in Canada was Kwaw-kwaw-Apilt First Nation in British Columbia at 96.6 per cent of its residents and in Alberta it was Janvier 194 reserve of Chipewyan First Nation with 88 per cent.
In the first 2021 census release, the Town of Canmore was one of the fastest growing small urban centres in Canada.
The community grew 14.3 per cent – from 13,992 in 2016 to 15,990 In 2021 – as one of the 111 small urban centres in the country. In nearby communities, Banff grew 5.8 per cent to 8,305 residents and the MD of Bighorn jumped 20.7 per cent to 1,598 in 2021.
Though Alberta had a 4.6 per cent growth from 2016 to 4,262,635 in 2021, it was still below the national average of 5.2 per cent. It was also the lowest increase for the province since before at least 1911.
Canada’s population increased from 35,151,728 in 2016 to 36,991,981 in 2021 and the census outlined there were 10,262,925 families in the country.
The MD of Bighorn’s median household after-tax income rose from $86,000 in 2016 to $90,000 in 2021, while Banff grew from $77,000 to $77,500 in the same time period.
The median after-tax income of Canadian households rose to $73,000 for a 9.8 per cent increase, while in Alberta it came in at $83,000, which was a 4.6 per cent decline from 2015.
Though Canmore’s and Bighorn’s median total income of households is high, it’s nowhere near the upper tier of Alberta.
That distinction goes to the Regional Municipality of Wood Buffalo – which also has the highest in Canada – at $184,000, Rainbow Lake at $168,000 and Rocky View County at $150,000.
In Canada, the national average for total income from ages 25 to 59 for men is $57,200 compared to $46,400 for women. Men in Alberta have a total income average of $65,500 and women are $46,400 between 25 to 59.
However, in Banff, men from 25 to 59 make a total income average of $46,400 and women $43,200. The MD of Bighorn surpassed the national and provincial total income averages, with men averaging $69,500 and women $51,200 between 25 and 59.
For people between 25 and 59, Canmore had an average total income for men of $61,200 and $51,200 for women.
The household after-tax income for Banff has 34.4 per cent of residents earn between $60,000 to $99,999. The next highest is 23.4 per cent between $30,000 and $59,999. In 2020, the two largest labour market incomes were 975 people earning $20,000 to $29,999 and 1,085 people making between $30,000 and $39,999.
In the MD of Bighorn, 33.6 per cent of households had an after-tax income of $60,000 to $99,999, with the next being 18 per cent at $150,000 or higher. The two largest population distribution of labour market income for 15 and older swung both ends of the spectrum in 2020 with 190 making $10,000 or less and 150 people making $100,000 or more.
The Town of Canmore has 28.4 per cent of households bringing home an after-tax income of $60,000 to $99,999 and 20.9 per cent are $150,000 or more. Similar to Bighorn, the two biggest labour market incomes for people 15 and older were on either side of extremes. There were 1,510 people who made less than $10,000 and 1,500 people who earned more than $150,000 in 2020.
The median total income in 2020 for Bighorn was $51,600, $50,400 for Canmore and $41,200 for Banff.
The highest in the country was Fermont, Que. at $105,000 and the Regional Municipality of Wood Buffalo was the highest in Alberta at $73,000.
The median household total income in Alberta dropped 5.9 per cent from 2015-20 – the biggest decline in Canada – while Canmore fell 0.9 per cent, Bighorn climbed 6.1 per cent and Banff was at zero.
BOW VALLEY CENSUS
Town of Banff
- 2021 population: 8,305
- 2016 population: 7,851
- 2020 median after-tax household income: $77,500
- 2015 median after-tax household income: $77,000
- 2020 median household total income before taxes: $88,000
- 2020 median total income: $41,200
- 2021 marital status: 7,515
- 2016 marital status: 3,635
- 2021 non married: 7,000
- 2016 non married: 3,550
- 2021 number of households: 2,930
- 2016 number of households: 2,545
- Percentage of population received pandemic-related support in 2020: 74 per cent
- Private dwellings: 3,287
- Private dwellings occupied by usual residents: 2,930
- Population density per square kilometre: 2,033.8
- Land area in square kilometres: 4.08
- Provincial population rank: 57
- National population rank: 498 of 4,831
MD of Bighorn
- 2021 population: 1,598
- 2016 population: 1,324
- 2020 median after-tax household income: $90,000
- 2015 median after-tax household income: $86,000
- 2020 median household total income before taxes: $104,000
- 2020 median total income: $51,600
- 2021 marital status: 1,320
- 2016 marital status: 1,120
- 2021 non married: 400
- 2016 non married: 365
- 2021 number of households: 640
- 2016 number of households: 555
- Percentage of population received pandemic-related support in 2020: 58 per cent
- Private dwellings: 875
- Private dwellings occupied by usual residents: 640
- Population density per square kilometre: 0.6
- Land area in square kilometres: 2,678.80
- Provincial population rank: 159
- National population rank: 1,598 of 4,831
Town of Canmore
- 2021 population: 15,990
- 2016 population: 13,992
- 2020 median after-tax household income: $92,000
- 2015 median after-tax household income: $91,000
- 2020 median household total income before taxes: $106,000
- 2020 median total income: $50,400
- 2021 marital status: 13,935
- 2016 marital status: 11,940
- 2021 non married: 5,230
- 2016 non married: 4,440
- 2021 number of households: 6,805
- 2016 number of households: 5,735
- Percentage of population received pandemic-related support in 2020: 60 per cent
- Private dwellings: 9,173
- Private dwellings occupied by usual residents: 6,804
- Population density per square kilometre: 233.5
- Land area in square kilometres: 68.47
- Provincial population rank: 28
- National population rank: 279 of 4,831
Improvement District No. 9
- 2021 population: 1,004
- 2016 population: 1,028
- 2021 marital status: 945
- 2016 marital status: 985
- 2021 non married: 540
- 2016 non married: 565
- 2021 number of households: 110
- 2016 number of households: 30
- Private dwellings: 123
- Private dwellings occupied by usual residents: 111
- Population density per square kilometre: 0.1
- Land area in square kilometres: 6,751.09
- Provincial population rank: 190
- National population rank: 2,105 of 4,831
Kananaskis Improvement District
- 2021 population: 156
- 2016 population: 221
- 2021 marital status: 150
- 2016 marital status: 200
- 2021 non married: 70
- 2016 non married: 95
- Private dwellings: 152
- Private dwellings occupied by usual residents: 60
- Population density per square kilometre: 0.0
- Land area in square kilometres: 4,203.24
- Provincial population rank: 338
- National population rank: 4,028 of 4,831
- Specific information on the Stoney Nakoda First Nation and 142, 142b, 143, 144 wasn’t yet available. Information for Improvement District No. 9 and Kananaskis Improvement District was limited in several categories.
