Canada is betting on a universal basic income to help cities gutted by manufacturing job loss
Segal recommended setting the handout at a minimum of three-quarters of Canada’s official poverty line. At that level, a single adult would receive an annual basic income of $16,989, almost double the $8,472 max payment under the province’s current welfare program.
Over 1.7 million people in Ontario live on incomes below the poverty line—$20,676 for a single person, or $41,351 for a household of four, according to 2011 data compiled by Statistics Canada. Many of the province’s poor were laid off between 2000 and 2007 as jobs evaporated in the auto industry and other manufacturing sectors.
One of the hardest-hit cities is Oshawa, which has battled to overcome a series of cutbacks at what was once one of General Motors’ biggest plants in North America. Ben Earle, a social planner with Durham Workforce Authority, a local think tank, estimates that the city, located about an hour’s drive east of Toronto, has lost 4,000 jobs over the past 15 years. He expects many of those jobs will never return. Thousands of former auto workers are now in precarious jobs “that are lower pay, contract-based, [and have] lower benefits—if they have benefits at all, ” Earle says.
Segal recommended setting the handout at a minimum of three-quarters of Canada’s official poverty line. At that level, a single adult would receive an annual basic income of $16,989, almost double the $8,472 max payment under the province’s current welfare program.
Over 1.7 million people in Ontario live on incomes below the poverty line—$20,676 for a single person, or $41,351 for a household of four, according to 2011 data compiled by Statistics Canada. Many of the province’s poor were laid off between 2000 and 2007 as jobs evaporated in the auto industry and other manufacturing sectors.
One of the hardest-hit cities is Oshawa, which has battled to overcome a series of cutbacks at what was once one of General Motors’ biggest plants in North America. Ben Earle, a social planner with Durham Workforce Authority, a local think tank, estimates that the city, located about an hour’s drive east of Toronto, has lost 4,000 jobs over the past 15 years. He expects many of those jobs will never return. Thousands of former auto workers are now in precarious jobs “that are lower pay, contract-based, [and have] lower benefits—if they have benefits at all, ” Earle says.