The Trap of “Persistent” Poverty

Poverty is often thought of as a temporary setback – a bad year or a short-term crisis. But new Statistics Canada research[1] released in February 2026 tells a different story. Between 2016 and 2022, nearly 1 in 10 Canadian taxfilers experienced persistent low income, meaning they were below the poverty line[2] for most of that period. Even more concerning is the “revolving door” effect: 1 in 5 people who escaped low income in 2017 fell back below the poverty line just one year. 

Poverty, in this sense, is not just about a lack of income in a single year, but about being unable to say financially secure over time. While poverty is more than low income – it also reflects limited choices, opportunities, and power- income remains a critical and measurable dimension of economic hardship.

A local lens: what does this look like in Halton?  

Community Development Halton’s Community Data Watch (CDW) on Duration of Poverty[3] uses longitudinal tax data to track how long people in Halton remain in low income. Between 2013 and 2020, the number of low-income taxfilers declined sharply as the number of years in low income increased. Most people experienced one or two years of low income, but a smaller and concerning group remained below the poverty line for six to eight consecutive years.

The local pattern reinforced an important point: while many people do move out of low income, persistent poverty is real, even in a relatively affluence region like Halton. At the same time, the CDW cannot link income data to detailed census-based characteristics, meaning we cannot identify which population groups locally are most affected by long-term poverty. That limitation matters and it points ongoing data gaps at the community level.

Persistent poverty follows structural lines

Nationally, persistent low income is not random. It follows clear social and structural patterns. More than one-quarter of Indigenous people experienced persistent poverty during the study period. Among racialized groups, about 21% of West Asian and 20% of Arab individuals experienced persistent low income.

Education stands out as one of the strongest protective factors. Across almost every group, higher levels of education significantly reduced the risk of persistent poverty. Among people with a university degree, only 4% experienced persistent low income, compared to 21% of those without a high school diploma.

Family structure also matters. Female lone-parent families face compounding risks, particularly when combined with other forms of disadvantage. About 30% of Indigenous people in female lone-parent families experienced persistent low income. That figure rises to nearly 60% for those without a high school diploma.

Exiting poverty does not guarantee stability

Most people who exit low income do manage to stay out but not everyone. About 70% of people who were in low income in 2016 were still there in 2017. Of those who exited in 2017, about 80% remained above the poverty line in 2018. But 1 in 5 re-entered low income the following year.

This shows that escaping poverty is not just about getting a job or having a good year It is about staying above water in a system where the current can easily pull people back down, especially those facing structural barriers and is discrimination. Escaping poverty is not just about getting a job; it is about staying above water in a system where the current is pulling you back down.

What this means for policy and action

This national study reinforces several critical lessons:

• Persistent poverty is structurally patterned. It is closely tied to education, family structure, disability, Indigenous identity, and racialization.

• Short-term incomed support help – but are not enough. COVID-19 income transfers reduced low income temporarily, but many people returned to or remained in poverty afterward.

• Education is a powerful lever. Policies that improve access to education especially for Indigenous peoples, lone parents, and people with disabilities can significantly reduce long-term poverty

• Intersectionality matters. Risks compound with characteristics overlap. Targeted, not one-size-fit all, approaches are essential.

[1] Statistics Canada, Who experiences persistent low income? A study of various demographic groups from 2016 to 2022. February 2026  https://www150.statcan.gc.ca/n1/daily-quotidien/260204/dq260204a-eng.htm

[2] As measured by Low Income Measure after tax (LIM-AT)

[3] Community Development Halton, Duration of Poverty, July 2024, Community Data Watch, https://drive.google.com/file/d/1YuXZwvmEU540v_LjOR9cnASpaMn8MjUb/view