In 1994, one in five children under 18 years lived in families with incomes below Statistics Canada's low income cut-offs, including many whose families had incomes far below this poverty line. In the past, most lone-parent families were created when one parent died. The reason is two-fold. Women who are employed generally receive lower wages than men, while unemployed women, primarily single mothers with young children, must rely on income security programs such as social assistance that set benefit rates below the poverty line. For children born in the early 1970's, their first experience with living in a lone-parent family lasted an average of 4.2 years.
Economic security is one of the most critical influences shaping child development.
On the other hand, children from low-income families are at significant social, physical and emotional risk. They are more likely to experience periods of economic insecurity that can harm healthy development, and to suffer the effect of poverty throughout their lives. In addition to available monies, economic security refers to the stability and source of income. Parents who experience unemployment face a sudden drop in income, while many others who still have jobs are fearful of the continuing cycle of cutbacks and downsizing. Due to high unemployment rates, families feel insecure about their economic futures and many are unwilling to make major purchases or investments.