Research shows living wage is insufficient for skyrocketing cost of thriving in the GTA
TORONTO (February 26, 2024) – Want to thrive in Toronto? According to new research by Wellesley Institute, if you are single, working, and between the ages of 25 and 40, it will cost $61,654 a year after taxes to live a healthy and meaningful life. If you live in Mississauga, the cost is even higher, at $83,680 a year.
“The resources it takes to be physically, socially and psychologically healthy in the GTA are far above what a full-time, living-wage worker earns, let alone a minimum-wage worker,” says Wellesley Institute researcher, Abinaya Balasubramaniam. “Thriving is not just having your basic food and shelter needs met. It includes connecting to your community and family, learning, and ensuring your long-term financial security.”
The living wage in the GTA is $25.05 an hour, which equates to $45,591 for the year before taxes. That covers just 54 per cent of the cost of thriving in the suburbs, and 74 per cent of the cost in Toronto. A minimum-wage worker in Ontario earns $16.55 an hour, which equates to only $30,121 yearly.
The research also shows that the cost of thriving in the GTA has skyrocketed since Wellesley Institute first conducted its Thriving in the City research in 2017. It’s up 33 per cent for single adults in Toronto, and 51 per cent for those living in Mississauga. The costs of housing, transportation, and putting aside enough money for retirement are the largest drivers of the increase.
“We need to be healthy to have strong communities and a strong economy. But most people today do not have what they need to thrive,” says Dr. Kwame McKenzie, CEO of Wellesley Institute.
“If we cannot increase wages to the level at which people can thrive, then we have to decrease the cost of essentials such as housing, food, utilities and transportation. We also need to make sure everyone has proper access to the care and support they need. This should not be considered optional. If we do not do it now, we will pay for it in the future.”
About the report
Thriving in the City: What does it cost to live a healthy life? identifies and costs out nine categories of goods, services and resources needed to achieve good health and well-being in Toronto and Mississauga including shelter, savings, transportation, social participation, food, professional development, healthcare, personal care and hygiene, and physical activity.
Read the full report. See the costs at-a-glance.
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About Wellesley Institute
Wellesley Institute works in research and policy to improve health and health equity in the GTA through action on the social determinants of health. Visit us at wellesleyinstitute.com.
For more information or to arrange interviews:
Judy Noordermeer
judy.noordermeer@wellesleyinstitute.com
647-830-9024
or
Colleen MacDonald
colleen.macdonald@wellesleyinstitute.com
647-458-3708