Nova Scotia’s Economy Grows, But Workers and Families Are Left Behind
The latest stats from Statistics Canada show that Nova Scotia’s economy grew faster than most of Canada last year. Our province’s real GDP increased by 2.7% in 2024, much higher than the national average of 1.6%. While that sounds positive, many workers and their families are not benefiting from this growth. Even with the economy improving, workers’ wages are not keeping up. Nova Scotia still has some of the lowest wages in the country, and many families are struggling with the rising cost of living. Half of all workers in Nova Scotia earn $25.64 an hour or less, which is not enough to support a family. We hear many rumblings and discussions about the government looking at cutting public services, which would be a massive setback for our communities and economy. Public services make up nearly 30% of Nova Scotia’s economy. Cutting public services would hurt everyone, especially those already vulnerable and relying on these services. Nova Scotia’s economy in 2024 stats show that goods-producing industries like construction and manufacturing grew by 3.8%, faster than the national average. Services-producing sectors like health care, education, and retail rose by 2.4%. The industries that grew the most were construction, transportation, and manufacturing. The real GDP per person in Nova Scotia only grew by 0.8%, and we still have Canada’s second-lowest GDP per person. Over half of Nova Scotia’s GDP comes from private services; nearly one-third comes from public services.
Let’s be clear, public services are not a burden but an investment in our people, communities and our future. Cutting public services may sound sexy, but any cuts will drastically slow our economy. We must ensure that economic growth leads to better wages, stronger services, and a fairer deal for all Nova Scotian families. We urge government leaders to protect and strengthen public services, invest in good jobs, and ensure every worker benefits from our province’s economic success.
Recent statistics from Stats Canada show that while our province’s GDP has increased, wages have not kept pace with rising living costs.
Poverty and food insecurity remain high, especially for children, single parents, and those living alone. This is a huge problem as the rich get richer while the rest get a few crumbs and are left falling further behind and in deeper poverty. Poverty is still a significant issue. In 2023, Nova Scotia’s poverty rate was 12.9%, tied for the highest in Canada. This means 132,000 Nova Scotians live in poverty, including 27,000 children and 19,000 seniors. The child poverty rate is 15.2%, the second highest in the country. Wages aren’t enough. The median after-tax income in Nova Scotia was $62,900 in 2023, the lowest among provinces. With the cost of living rising, wages have not kept up. For instance, a family of four in Halifax needs about $54,966 for a basic standard of living, and in Cape Breton, it’s $50,634. These amounts went up by nearly 5% in just one year. Almost 3 out of 10 Nova Scotians, 29.3%, lived in households that struggled to afford enough food in 2023. This is even worse for single-parent families at 48.6%, people living alone at 35.3%, and families with children at 33.4%.
Children and young adults are especially affected. Single parents and those living alone are hit hardest: The poverty rate for single-parent families was 26.5%, higher than the national average. For individuals not living with family, the poverty rate was 34.6%, one of the highest in the country. More women, 69,000, than men, 63,000, lived in poverty last year. Poverty rates are much higher for our visible minority communities at 21.6% compared to those who are not in the visible minority or Indigenous groups, standing at 11.3%. Most people in poverty are working adults, with the majority of those living in poverty between 18 and 64 years old. This issue affects working people, not just children or seniors. The living wage needed to cover basic expenses in Nova Scotia increased by 14% in 2023 due to rising food and shelter costs, while pay has not kept pace. This is not right; too many workers and their families are falling further behind in a province where the economy is growing. People are working hard but can’t afford the basics, and our government has a responsibility to act to lift people, not continue to hold them down.
Here are the two Statistics Canada reports.
