The income disparity in Canada widened last year due to the growth in financial markets, decreased interest earnings, and a weakening job market, according to Statistics Canada’s recent report. The agency stated that the income gap, representing the difference in disposable income share between the top 40% and bottom 40% households, reached 46.7 percentage points in 2025, slightly up from 46.4 points the previous year.
The expanding gap was attributed to slower wage increases for lower-income households compared to the overall average and a decline in investment income resulting from reduced interest payments on savings. Meanwhile, Statistics Canada highlighted that the wealthiest 20% of households accounted for 65.7% of the country’s total net worth in 2025, with an average of $3.5 million per household. In contrast, the bottom 40% only held three percent of Canada’s net worth, averaging $81,650 per household.
At the end of 2025, the wealth gap between the top 20% and the bottom 40% stood at 62.7 percentage points, up by 0.6 points from the previous year. Insolvency firm MNP Ltd. also noted this growing disparity in its financial surveys, mentioning signs of overall stability despite the increasing divide. The company revealed that its debt index based on surveys remained stable as Canadians became more cautious with spending, yet financial strains were unevenly distributed. Some individuals struggled to meet financial obligations, while others refrained from significant financial commitments.
Grant Bazian, President of MNP Ltd., expressed concerns about the shifting financial landscape, emphasizing the challenges many Canadians face in planning, budgeting, and achieving financial security amidst growing uncertainty.