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Canada’s Income Gap Reaches Record High in First Quarter 2025

Post-pandemic investment returns drove the surge in disposable incomes for top earners.

A Statistics Canada sign is pictured in Ottawa on Wednesday, July 3, 2019. THE CANADIAN PRESS/Sean Kilpatrick
A magnifying glass enlarges the holographic image of Parliament Hill's Peace Tower on a 20 dollar bill issued by the Bank of Canada, shown in a display case at the Bank of Canada Museum in Ottawa, on Wednesday, Sept. 4, 2024.

Overview

  • Statistics Canada reports the share of disposable income between the top 40 percent and bottom 40 percent of households widened to 49 percentage points in Q1 2025.
  • Households in the top 20 percent saw their average disposable income rise 7.7 percent year-over-year, underpinned by a 4.7 percent gain in wages and a 7.4 percent boost in investment income.
  • Those in the bottom 20 percent recorded just 3.2 percent growth in disposable income alongside a 0.7 percent drop in average wages and a 35.3 percent fall in net investment earnings.
  • Net transfers to the lowest-income households climbed 31.2 percent, reflecting ongoing government support measures.
  • Wealth concentration intensified as the top 20 percent held 64.7 percent of Canada’s total net worth while the bottom 40 percent accounted for only 3.3 percent.