Canadian food Bank users to double in 2024

December 6, 2023December 6, 2023canada, Cost of living, food bank useage, food banks, food banks in Canada, Housing bubble, housing prices in canada, poverty, poverty in Canada, sky high cost of living in Canada

As Canada stands as one of the wealthiest nations globally, the persistent increase in the number of people relying on food banks paints a concerning picture of economic challenges faced by a segment of the population. Perhaps concerning is an understatement, numbers show a very grim situation in large Canadian cities. What are the reasons behind the escalating usage of food banks in Canada? What are the socio-economic factors contributing to the growing financial strain on individuals and families.

According to a report issued in November, the number of individuals using food banks in Ontario increased by 38% in the previous year, marking the highest growth in a single year for the network of food banks in the province. According to a recent report by a coalition of hunger relief organizations called Feed Ontario, over 800,000 people in the province requested emergency food assistance between April 1, 2022 and March 31, 2023. According to the report, there were more than 5.9 million trips to food banks during that period, which is 36% more than the previous year.

According to the survey, two out of every five individuals who utilized food banks were first-time users, who contributed significantly to the rise. It mentions that represents a 41% rise from the year prior.

October saw the publication of yearly reports from Food Banks Mississauga and Daily Bread Food Bank in Toronto. Both organizations reported double-digit percentage increases in the number of visitors to respective member food banks in 2022 and 2023.

The CEO of Food Banks Mississauga, Meghan Nicholls, predicted that if government inaction continues, the population in need of food banks will increase. She said that this year was special since it was the non-profit’s greatest growth in its 37-year existence.

But the numbers of 2023 did not peak, many food bank spokespersons predict. As 2024 is approaching many believe that 2024 will be one of the toughest years so far. Prediction of food bank usage in Canada goes as high as 100% increase upcoming year. Alarming number indicating that something needs to be done in Canada and as soon as yesterday.

Sky high housing prices have contributed mostly in this recent spike in poverty. Food and energy costs are second to blame, followed by poor job availability.

Economic Insecurity and Unemployment:

One of the primary drivers of food bank usage is economic insecurity, often exacerbated by unemployment. While Canada has experienced periods of economic growth, not all segments of the population have benefitted equally. The rise in precarious employment, part-time positions, and job instability contribute to financial insecurity, forcing individuals and families to turn to food banks for support. Recent layoffs by CBC and TD Bank have widened the wound of Canadians, Holliday season will be a though one for many families.

Housing Affordability and Cost of Living:

The soaring cost of housing in pretty much every urban or suburban areas, coupled with the overall high cost of living, places a significant burden on households. A considerable portion of income is allocated to housing expenses, leaving limited resources for other essential needs like food. As housing affordability continues to be a challenge, more Canadians find themselves facing difficult choices regarding basic necessities. Just to compare the year of 2000 with 2023, house prices in Canada rose astronomically, increase of up to 500% while the income went up by only 50%! The shift is enormous! According to Equifax, total consumer credit increased to $2.4 trillion in third quoter.

Income Disparities and Wage Stagnation:

Despite overall economic growth, income disparities persist in Canada. Wage stagnation, particularly for low-wage workers, contributes to a scenario where a portion of the population struggles to keep up with the increasing cost of living. As a result, these individuals may turn to food banks to bridge the gap between their income and basic living expenses. Even availability of higher paid jobs is scarce. Major Canadian employers laying off workers doe to automatization and government failure to secure new investments which could create new quality jobs leave Canadians with very little hope for happy and prosperous new year.

The increasing number of Canadians turning to food banks is a complex issue rooted in economic disparities, employment challenges, and the high cost of living. While Canada’s overall economic prosperity is evident, a closer look reveals that not all individuals and families are sharing in the benefits. Addressing the root causes of food insecurity requires a comprehensive approach that considers income inequalities, affordable housing solutions, and improved social assistance programs. As a nation, understanding the factors driving the growing demand for food bank services is crucial in developing targeted strategies to support those facing financial hardships and working towards a more inclusive and equitable society.