In 2007, Newfoundland and Labrador had the third lowest poverty and child poverty rate in the country, due largely to the efforts of its poverty reduction strategy. Unfortunately, despite this huge success, the 2008-2009 recession has increased poverty and economic insecurity for Newfoundland and Labrador families.
Newfoundland and Labrador suffered the second largest increase in unemployment in the country during the recession. Employment Insurance prevented many of these families from turning to social assistance, but Income Support caseloads still increased. The effects of the recession were visible in rising food bank use and an increase in bankruptcies, as the province also had to contend with a significant increase in the cost of living. Read more »