According to a recent Industry Canada study, "A Regional Perspective on the Canada-U.S. Standard of Living comparison," standards of living in Canadian provinces are well behind those of U.S. states, based on data collected from 1992 to 1997.

For Canadians who have patted themselves on the back for a perceived higher-than-average standard of living than in the U.S., these findings come as a shock. In fact, only seven states, recorded standards of living below the Canadian average. In one third of U.S. states, the standard of living is more than 25 % higher than the Canadian average, according to the report, and it is more than 50 % higher in Delaware, Alaska, Connecticut and Wyoming. In Canada, Manitoba, New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland all rank below Mississippi, the state with the lowest standard of living.

Although employment levels have reached all-time highs in many Canadian communities, cooling economies, rising health care costs and skill shortages may cause standards to drop further. Standard of living and quality of housing are so closely linked, Canadians may find their home life under further attack in the coming decades.

The best Canadian performer, Alberta, ranked 18th among the combined 50 states and 10 provinces, while Ontario – long describing itself as an economic leader – is in 37th place. British Columbia ranked 49th and the rest of the Canadian provinces were grouped at the bottom of the list.

The framework of analysis used by Industry Canada states that "the standard of living is best measured through real GDP per capita as it encompasses all earnings accruing to residents of a country." This means real income per capita is determined by the productivity of workers as well as the proportion of the population at work. A high level of productivity and a large proportion of the population at work will result in a high standard of living.

Industry Canada researchers concluded that productivity was the predominant factor explaining income gaps among provinces and states. Differences in employment rates seemed to play a limited role in explaining the gaps and, therefore did not influence final rankings. Productivity ranking of the provinces and states followed a pattern that paralleled standard of living findings: except for Alberta and Ontario, the remaining provinces were listed as the lowest in productivity.

Published: August 8, 2000

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Futurist and Strategist PJ Wade is "The Catalyst" -- intent on "Challenging The Best to Become Even Better." PJ earned this title by translating the dynamic impact of Boomers and their multi-generation families into relevant insights that start people thinking and taking action—in business and in life. Author of 7 books and more than 1600 published articles, PJ encourages individuals to become their own futurist. PJ writes and speaks about the insight, knowledge and solid decision-making skills that professionals and their clients need to live and work in this vortex of change. For instance, since PJ knows that home is headquarters for the new decades-long "unretirement," she wrote the popular book "Reverse Mortgages: Best Friend, Worst Enemy... Your Choice! (CatapultPublishing.com), which is filled with suggestions and insight on protecting and using home equity. Her new business book, "What's Your Point?," which identifies 7 common mistakes professionals unknowingly repeat to their detriment, will be published in 2009. As The Catalyst, PJ provides strategic communication, client appreciation and advanced education services to the financial, tourism, lifestyle and service sectors -- and the clients they serve. A frequently-quoted financial and business commentator, PJ is a thought-provoking strategic speaker who offers practical, real-life suggestions on leaving "the box" behind and embracing Forward Thinking -- a talent she regularly demonstrates in this column. For more on blogs, books and topics, visit TheCatalyst.com.