A new report released earlier this week suggests that the annual cost of “thriving” for a single, working-aged adult in the GTA is between $61,654 and $83,680 after taxes. The data comes from the Wellesley Institute’s Thriving in the City series, which aims to provide information about the gap between “what people have and what they need to thrive” in the GTA, as well as inform public policies aimed at closing these gaps.
To reach their estimate, researchers looked at the costs for goods, resources, and services that are important for well-being. Costs were identified from research referencing sources like Statistics Canada, the City of Toronto Nutritious Food Basket, as well as market data. Two scenarios were presented for shelter, transportation, and overall living costs: one for a Toronto-based renter without a car and another for a Mississauga-based condominium owner with a car.
The researchers found that the annual cost of thriving estimate is far above the earnings of a minimum-wage, full-time worker in Ontario. For example, someone making $16.55 per hour/35 hours per week would only net $25,994 after taxes.
“While increasing the minimum wage is an important step forward, it is unlikely to ever be sufficient to support a thriving state of physical, social and psychological well-being,” the report states, noting that the highest costs of living are associated with fundamental aspects of life, like shelter, transportation, and savings.
“Reducing personal expenses is likely to have a limited impact on the overall cost of thriving because of the high cost of necessities for well-being” the report adds.
Even someone earning a living wage of $25.05 per hour (or $45,591 per) in the GTA would not reach a thriving income.
The report suggests that increasing wages is only one solution to increasing the number of people in the GTA who have sufficient income and resources to thrive.
“Employers should provide, and governments should guarantee, extended health benefits. Employers and governments should enhance pensions for all. Finally, and crucially, all levels of government should collaborate to improve policies and programs that address other social determinants of health,” the report advises, recommending that we build on our current healthcare system and reduce the costs of housing and public transportation.
Meanwhile, food bank usage has reached crisis levels in Toronto, spurred by the high cost of living, high grocery costs, and a lack of affordable housing, leading some to try dumpster diving.
