The income gap in Canada has reached its highest level on record, according to new data from Statistics Canada. The agency reports that in the first quarter of 2025, the disparity in disposable income between the wealthiest and poorest households widened to a 49-percentage-point difference between the top 40 per cent and bottom 40 per cent of earners.
The trend reflects a continued post-pandemic divergence in financial growth, with high-income households gaining from rising investment returns, while lower-income Canadians are seeing their wages stagnate or decline.
Households in the bottom 20 per cent experienced the weakest growth in disposable income, rising just 3.2 per cent year-over-year, with average wages falling by 0.7 per cent. In stark contrast, the top 20 per cent of earners saw their average disposable income increase by 7.7 per cent—the fastest growth among all income groups.
Statistics Canada noted that the income gap has grown every year since the onset of the COVID-19 pandemic, underscoring the lasting economic impact on lower-income households and the growing influence of capital gains for higher earners.