How is Southeast New Brunswick doing?

Highlights from the 2021 Population Census, Part 2.

This blog will focus on the level of income of families and individuals in Greater Moncton and Southeast New Brunswick and its changes since 2015.

Average after-tax income (individuals and households)

The average after-tax total income of individuals in Greater Moncton and Southeast New Brunswick in 2020 was $39,360, a little lower than the average after-tax income of individuals in the Moncton CMA, which was $40,280 (or 2.33% higher). In contrast, the region’s average after-tax income of individuals in 2020 is 1.44% higher than the province’s and 12.37% lower than Canada’s.

Since 2015, the Greater Moncton and Southeast New Brunswick average after-tax income of individuals has increased 17.8% (3.56% on average per year), at a higher rate than the Moncton CMA, the province of New Brunswick and Canada as a whole. The average income after-tax in the Moncton CMA increased 16.36% (3.27% on average per year). Both rates of growth outpaced inflation; by 9.5% in Southeast New Brunswick and by 8.1% in the Moncton CMA[1]. This means that income in real terms in both Southeast New Brunswick and Moncton CMA has also increased.

At the household level, the average after-tax income also improved. It went from $62,427 in 2015 in Southeast New Brunswick, to $74,000 in 2020 (an increase of 18.5%, or 3.7% per year on average). In the Moncton CMA, average after-tax household income went from $64,050 in 2015 to $75,300 in 2020, (a growth of 17.6% or 3.5% on average per year). Again, the increase in household income in both regions outpaced inflation by 10.2% in Southeast New Brunswick and by 9.3% in the Moncton CMA.

Average after-tax income by gender

The average after-tax income by gender is different in both Southeast New Brunswick and the Moncton CMA. Males have a higher average after-tax income than females in both areas. In 2015, males had an average after-tax income 28.2% higher than females in Southeast New Brunswick, and 29.3% higher in the Moncton CMA. In 2020, the gap had reduced by almost 7 percentage points to 21.4% in Southeast New Brunswick and to 22% in the Moncton CMA.

Even if progress was made, there is still need for more work to reduce income inequality based on gender in the region.

Poverty

Poverty can be analyzed using measures like the low-income rate[2]. The prevalence of low-income individuals in Greater Moncton and Southeast New Brunswick has also been declining. For all age groups, the indicator decreased by 2.4 percentage points since 2015. The age group with the highest reduction in poverty was those 0 to 5 years old (4.9 percentage points decrease) followed by those 0 to 17 years old (4.8 percentage points decrease). In contrast, the prevalence of low-income increased among those 65 and older (1.2 percentage points increase).

The high prevalence of low-income in people aged 65 and older, as well as children 0 to 5 years old, is worrisome. This points to the need for a better safety net for children and elderly, and the need to encourage federal and provincial officials to increase social benefits like the Child Care Benefit for low income families as well as other pension benefits for low income retirees.

Maria Fernandez Ph.D.
Economic Analyst at 3+

[1] Total inflation in Canada between 2015 and 2020 was 8.3% (Canada Historical Inflation Rates – 1989 to 2022 | Inflation Rate and Consumer Price Index (rateinflation.com).

[2] The low-income rate is based on the after-tax low-income measure (LIM-AT) used by Statistics Canada.