The cost of living in Quebec in 2023: What the latest IRIS figures show

Over the years, the cost of living in Quebec has risen considerably, making it increasingly difficult for many households to meet their basic needs. In 2023, the question of sustainable income - that is, the income needed to enable an individual or family to live adequately and free from precariousness - has become a major issue for Quebec society. In this article, we will analyze recent figures published by the Institut de recherche et d'informations socio-économiques (IRIS) concerning sustainable income for different types of households and localities in Quebec.

Sustainable income in Quebec in 2023

The Institut de recherche et d'informations socioéconomiques (IRIS) has published a study on the income threshold that would enable Quebecers to escape precariousness and lead a dignified life. In 2023, the sustainable income for a single person is estimated at 32,252 $ in Montreal, 27,047 $ in Saguenay and 37,822 $ at Sept-Îles. In comparison, the disposable income of a single person at minimum wage in Quebec is around 25,290 $ in 2023. The study examines three household types in seven Quebec municipalities.

The full document (PDF) is available on the IRIS website: 9th edition of Revenu viable au Québec

The components of sustainable income

Sustainable income, as determined by IRIS, takes into account the costs of goods and services essential for a decent life. These include housing, food, health care, transportation, clothing, recreation, education, childcare and miscellaneous expenses (telecommunications, insurance, savings, etc.). IRIS also analyzes variations in these costs by locality and household type, to estimate a sustainable income for each situation.

Geographical variations in sustainable income

Viable income levels vary considerably by location. The cost of living is generally higher in large cities, such as Montreal and Quebec City, and lower in rural or remote areas. Cost differentials are mainly due to price differences for housing, transportation and health services.

Detailed components of a sustainable income for a single-person household in 2023 for various Quebec locations (in Canadian dollars) :

• Power supply :
  • Montréal: 6 314 $
  • Quebec: 6 194 $
  • Gatineau: 6 359 $
  • Sherbrooke: 6,516 $
  • Saguenay: 6,553 $
  • Trois-Rivières: 6,634 $
  • Sept-Îles: 7,083 $
• Clothing :
  • Montréal: 1 512 $
  • Quebec: 1 512 $
  • Gatineau: 1 512 $
  • Sherbrooke: 1 512 $
  • Saguenay: 1 512 $
  • Trois-Rivières: 1 512 $
  • Sept-Îles: 1 512 $
• Housing (rent + electricity + tenant's insurance) :
  • Montreal: 12 196 $
  • Quebec: 11 620 $
  • Gatineau: 12 748 $
  • Sherbrooke: 9,376 $
  • Saguenay: 7,768 $
  • Trois-Rivières: 8,032 $
  • Sept-Îles: 8,944 $
• Transport :
  • Montréal: 1 128 $
  • Quebec: 1 188 $
  • Gatineau: 1 260 $
  • Sherbrooke: 1 020 $
  • Saguenay: 918 $
  • Trois-Rivières: 870 $
  • Sept-Îles: 9,591 $
• Other requirements :
  • Montréal: 9 450 $
  • Quebec: 8,956 $
  • Gatineau: 8 901 $
  • Sherbrooke: 8 767 $
  • Saguenay: 8,719 $
  • Trois-Rivières: 8,733 $
  • Sept-Îles: 9 115 $

Total cost for one year or sustainable income :

• Montréal: 32 252 $
• Quebec: 31 104 $
• Gatineau: 32 358 $
• Sherbrooke: 28,767 $
• Saguenay: 27,047 $
• Trois-Rivières: 27,358 $
• Sept-Îles: 37,822 $

Differences in sustainable income by household type

IRIS also studied variations in sustainable income for three types of household: single people, couples without children and families with two children. Financial needs differ greatly according to household size and composition. Families with children, for example, spend more on housing, food and childcare.

Inflation and its impact on the poorest

The income required to achieve a poverty-free standard of living has risen faster than inflation. The official inflation rate in Quebec is 6.7 %, but the basket of goods and services used to calculate the sustainable income of a household of two adults and two young children has increased from 8 % to 12 %, depending on the localities studied. The housing, food and transport sectors, which account for the majority of household expenditure at the lower end of the scale, experienced particularly high inflation.

Government policies and inequality

The government has chosen to improve the disposable incomes of those at the top of the ladder by applying tax cuts that benefit them in the long term, while the rising cost of living has had a greater impact on low-income households. Eve-Lyne Couturier, a researcher at IRIS, points out that it would have been possible to act differently and prioritize protecting the purchasing power of incomes at the bottom of the scale, with a positive effect on society as a whole.

Temporary financial aid during the pandemic

Temporary financial aid paid to households at the start of the pandemic has had a positive, if one-off, effect. The number of people unable to cover their basic needs fell from 8.9 % of the population in 2019 to 4.8 % in 2020. In addition, the share of the population belonging to the middle class in Quebec rose from 52.1 % in 2019 to 55.1 % in 2020, with no loss of standard of living for wealthier households.

Conclusion

Sustainable income in Quebec in 2023 is heavily impacted by inflation, government policies and the current minimum wage. To improve the situation of low-income households and combat poverty, we need to adopt a comprehensive, coordinated approach, involving various players in society and measures tailored to the specific challenges faced by these households.

Read more : Sustainable income 2023: in the spiral of inflation and tax cuts