Statistics Canada reported on Monday that the income disparity in Canada widened in the previous year due to the growth in financial markets, decreased interest payouts, and a weakening job market. The agency stated that the income gap between the top 40% and bottom 40% of households reached 46.7 percentage points in 2025, slightly higher than the 46.4 percentage points recorded the year before.
The increase in the income gap was attributed to slower wage growth for lower-income households compared to the average, along with a decrease in investment income due to reduced interest payments on savings. Additionally, Statistics Canada highlighted that the wealthiest 20% of households in Canada held 65.7% of the country’s total net worth, with an average of $3.5 million per household. In contrast, the bottom 40% of households possessed only three percent of the total net worth, averaging $81,650 per household.
At the end of 2025, the wealth gap between the top 20% and bottom 40% of households increased to 62.7 percentage points, rising by 0.6 percentage points from the previous year. Insolvency practice MNP Ltd. noted the growing wealth disparity in financial surveys, indicating a stable debt index over the past year with Canadians showing cautious spending behavior. However, financial pressures were uneven, with some individuals struggling to meet financial obligations while others refrained from major financial decisions.
Grant Bazian, the president of MNP Ltd., expressed concerns about the evolving financial landscape, emphasizing the challenges faced by Canadians in planning, budgeting, and achieving financial security amidst increasing uncertainty.
Overall, the data suggests a widening income and wealth gap in Canada, reflecting ongoing economic challenges for various segments of the population.