6. Conclusion

The economic landscape for lone-parent families in Canada has shifted considerably between 2001 and 2021. The findings from this research highlight the complex nature of these shifts, especially when considering the intersectional identities of lone parents. Overall, the median after-tax income of lone-parent families increased substantially, surpassing the growth rate of couple families with or without children. However, lone-parent families still face economic challenges, as their incomes remained considerably lower than those of couple families with or without children.

The reduction in low-income status among lone-parent families is notable, with a substantial decline over the 21-year period. The introduction of new child benefits and COVID-19 support payments played a contributing role in this reduction, positively impacting the financial stability of lone-parent families and demonstrating the importance of government transfers in mitigating income volatility. However, their reliance on these transfers also underscores the vulnerability of lone-parent families to changes in government policy and economic conditions. It is important to take this into account when exploring approaches to reduce the precarious nature of lone-parent families’ income.

Despite this improvement, a higher proportion of lone-parent families continue to live in low income compared to couple families with or without children, particularly among certain population groups, including Indigenous lone parents, lone parents with disabilities, and certain racialized immigrant lone parents. These groups face intersecting forms of economic disadvantage, requiring targeted policy interventions to address their unique needs.

Gender disparities persisted within lone-parent families throughout 2001 and 2021. During the 21-year period, female lone parents have experienced a higher growth in median income compared to their male counterparts, yet they still earned less overall. The gap in low-income status between male and female lone parents has also narrowed, but female lone parents remain more likely to live in low income.

In sum, while progress has been made in improving the economic well-being of lone-parent families in Canada, significant challenges remain. Continuous monitoring of the shifts in the income and economic well-being of lone-parent families will help inform the Department of Justice Canada’s ongoing policy development on the Federal Child Support Guidelines. While the Federal Guidelines were developed for a multitude of social, economic and political factors, one driving force was the rise in divorces in the 1970s and 1980s, which led to a rise in lone-parent families and a rise in the poverty rate among children and female lone parents. The economic well-being of lone-parent families remains a key consideration when monitoring the Federal Guidelines.