Wellbeing of Canadians doesn't keep pace with economy

​Hon. Roy Romanow (left) and Professor Bryan Smale.  Photo Credit: Jonathan Bielaski

While Canada’s economy appears to be bouncing back from the 2008 recession, a recent report released by the Canadian Index of Wellbeing (CIW) shows that Canadians’ overall quality of life is tied to much more than just the economy. In fact, improvements in Canadians’ overall wellbeing have stalled, and in certain areas, even declined.

The report is the second set of findings to come out of the CIW, and the first to document the impact of the recession on Canadians’ wellbeing.  The CIW, which officially launched at the University of Waterloo in January 2011, was developed over the course of a decade to measure how Canadians are really doing —  something researchers felt Canada’s traditional marker of prosperity, Gross Domestic Product (GDP), failed to do.

Canada’s GDP dropped during the recession, but returned to near pre-recession levels by 2010. Canadians’ wellbeing, on the other hand, continues to decline from its very modest growth over the previous 17 years.

“GDP has been erroneously used as a measurement of wellbeing,” said Bryan Smale, director of the Canadian Index of Wellbeing. “If it really represented how Canadians were doing then we could assume that as GDP recovered from the recession, so would Canadians’ wellbeing. But that is simply not the case.”

The CIW uses 64 indicators within eight quality of life categories to measure those things identified by Canadians as important to them. From living standards to education, the CIW is designed to paint a more comprehensive and bigger picture of life in Canada. But the bigger picture isn’t pretty.

Recession still affecting Canadians’ health

Since the recession, Canadians’ overall health has begun to decline. Despite living longer, Canadians are not necessarily living healthier lives. More than 80.5% of 12 to 19 year olds reported excellent or very good health in 1998, but only 68% did so in 2009.  

Also alarming are increases in depression and diabetes. Over the past 17 years, the incidence of diabetes has increased 53.1%, with rates among Aboriginal Canadians living on reserves sitting at three times the national average. Canadians are also more likely to experience depression. Self-reported cases of depression have increased 3.6% between 1994 and 2010.

The Honourable Roy Romanow, the CIW’s Advisory Board Co-Chair, says these trends beg the question, “are our governments truly responding to the needs and values of everyday Canadians?”

From statistics to action

Currently the CIW is undertaking a breakdown of results by province. “Place matters. Where you live has an impact on your wellbeing,” said Smale. “Because the provinces have jurisdiction over the delivery of health care, we are curious to see if variations in the wellbeing across provinces are linked to differences in policies.”

The ultimate purpose of the CIW is to encourage policy shapers and government leaders to make decisions based on solid evidence in areas of life that go beyond the economy and to provide Canadians with the means to advocate for changes that respond to their needs and values.