BR Newsletter

Amid all the discussion about the Census, I was recently asked if Statistics Canada had another database that would provide local neighbourhood data.  While there will never be a resource as rich and complete as a long-form based Census, the short answer to the question is “yes”.

The Small Area and Administrative Data Division (SAADD) of Statistics Canada produces tables based on information gathered from tax returns. The resulting sample is robust enough to be accurate at smaller geographic levels such as federal electoral districts, forward sortation areas (the first three characters of the postal code), and postal walks (letter carrier routes).  Be assured this Taxfiler data is always aggregated so individual information is kept confidential

While the information is limited to what can be gathered from a tax form, the dataset is more comprehensive than you might initially think.  In addition to the expected details – income distribution, labour and self-employment income levels – basic demographics are also covered such as age, gender and family characteristics. You can also access information which profiles charitable donors, RRSP contributors and the level of contribution room available.  Information on investment income, interest income, capital gains as well as migration estimates are also covered.

For a full list of all available data tables see the publication: Neighbourhood insights – Your guide to the statistical information packages available from Small Area and Administrative Data Division, Statistics Canada

While this information is updated annually it sometimes appears there is a two year delay in the release of the data.  2008 data is the most current available right now. If you think about it though, there is not much that can be done to make it more current. In the spring of 2010 you submited your tax information for 2009.  Only after the Canada Revenue Agency has done their tax business with the form, can statistical analysis take place.

Most of the income based tables are updated in November of each year.   So in November 2009, data covering 2008 was released.  This November the income data will be updated to 2009.  The family tables are generally not updated until the following spring.

The pricing of this data is a bit of a Gordian Knot especially if you are only interested in selected areas.  It is based on the number of tables you want and the number and size of the geographical areas you are interested in.  Pricing starts at around $75.00.   From there it is quite variable.  My best advice is to contact me at the QueryDesk with your data needs and I will let you know the details specific to your research.  I can even add you to our update list so you can be notified in November as soon as the updated results are available.

If your research budget is non existent there are a couple of low cost/no cost options for you.

You can access selected data from the Taxfiler database through CANSIM. See Tables: 111-0001..111-0041.  While it does not include local level detail, information by metropolitan area is available. The advantage of CANSIM is that you can gain instant access to specific data for only $3.00 per time series.  For more information on CANSIM see our CANSIM research guide.

The free option is the Canada Revenue Agency Locality code statistics page.  It provides data on income range and sources of income (e.g. employment, investment, self-employment, pension) by municipality.  While this information is no where near as robust as the Taxfiler database it is a free way to update the income profile of a community beyond the last Census.

The Taxfiler database is by no means even close to Census data but it does provide another option for local neighbourhood insights.

Please note: none of the above sources provide the names and addresses of wealthy households in Canada.  For that type of information you would need to contact a Mail List firm such as InfoCanada

For the last 14 years I have assisted many new entrepreneurs and small businesses with their market research. One of the most utilized market resources is the Census.  The advantage of the Census is that it allows a small business to assess its local market with reliable data at a reasonable cost.  Much of the data is available free of charge.   This essential information helps to ensure your business is being launched or expanded on more than just a hunch.

For those with privacy concerns it should be noted that this data is only numerical in nature.  Individual names and addresses are not accessible from the Census.  It is not a mailing list.

The proposed removal of the long form from the Census is a foolish one.  The long form data is essential for not only new entrepreneurs but for businesses of all sizes,  as well social groups, community organizations, municipal, provincial and federal governments and yes even the political parties who use local Census data to strategize for their re-election campaigns!

Industry Minister Tony Clement is naive to think that the new survey will garner more responses because it is distributed to more households.  The Survey of Household Spending (SHS), a detailed voluntary consumer expenditure survey from Statistics Canada garnered an average national response rate of 63%.  This rate applied to the new voluntary survey proposed to replace the long form would produce fewer responses than the actual Census.

What makes the voluntary survey especially troubling is the inevitable regional variation in response rates.   At a provincial level the SHS response rate ranged from 57.2% in Alberta to 71.3% in Newfoundland & Labrador.   This type of variation will be even more dramatic from neighbourhood to neighbourhood.   A voluntary survey will not provide the same quality of data at a local level.   Information at a DA level will not be possible.   Future business decisions, social and government policies will be based on insufficient data.   One of the greatest benefits of the Census is the insight it provides at a neighbourhood level.  This will be lost for no apparent reason other than a cabinet whim.

Industry Minister Tony Clement comments that fears are “overwrought”.  Perhaps it is his  government that is “overwrought” with concern about potential Census protests and so feel the system that has been in place for 35 years should be changed without thought or public consultation.   When I worked at Statistics Canada during the 1996 Census there were numerous people who came into the Toronto office concerned about filling out the Census.  Some were extremely angry.   Yet once it was explained why the Census was taken and what the information was for, they filled out their forms without further distress.  I did not threaten people will jail time or place them under duress, I simply explained the rationale behind the questionnaire.

The payback from detailed Census data collected once every five years from one in five households is enormous.  All Canadians benefit.  The removal of the long form is a very short-sighted and foolish policy decision.

I just uploaded a new Stats Pack.  You can access it here.  It covers the following topics:

Given the number of entrepreneurs that were deflated by the recession, one has to wonder about the long-term outlook for entrepreneurship in Canada. The wind was definitely taken out of a lot sails. Hopefully people are simply waiting for “better weather” and have not given up entirely!