Statistics Canada reported on Monday that the income disparity in Canada widened in the past year due to market gains, reduced interest payments, and a weaker job market. The income gap, which measures the difference in disposable income between the top 40% and bottom 40% of households, reached 46.7 percentage points in 2025, slightly higher than the previous year’s 46.4 percentage points.
The agency attributed the growing gap to slower wage growth for lower-income households, decreased investment income from lower interest rates, and a disparity in wealth distribution. The top 20% of wealthy Canadians held 65.7% of the country’s net worth, averaging $3.5 million per household, while the bottom 40% only possessed 3% of Canada’s net worth, with an average of $81,650 per household.
The wealth gap between the top 20% and bottom 40% increased to 62.7 percentage points in 2025, up by 0.6 percentage points from the previous year. Insolvency firm MNP Ltd. also noted the widening wealth gap in its financial surveys, highlighting a sense of financial stability but uneven financial pressures. The firm’s debt index remained stable, indicating cautious spending habits among Canadians, with some struggling to cover expenses and debts while others refrained from significant financial decisions.
Grant Bazian, the president of MNP Ltd., expressed that many Canadians are facing financial uncertainties, making it challenging to plan, budget, and maintain financial stability amidst a shifting economic environment.