Statistics Canada reported that the gap between the highest- and lowest-income households in Canada reached a record high of 49 percentage points in the first quarter of 2025. This widening disparity, which has increased annually since the COVID-19 pandemic, is attributed to high-income households benefiting from investments while low-income households experienced declining wages and investment income, despite some government support.
Income inequality hit record high at start of 2025, Statistics Canada says
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TL;DR: Key points with love ❤️Statistics Canada reported that the gap between the highest- and lowest-income households in Canada reached a record high of 49 percentage points in the first quarter of 2025. This widening disparity, which has increased annually since the COVID-19 pandemic, is attributed to high-income households benefiting from investments while low-income households experienced declining wages and investment income, despite some government support.
Trending- 1 2008-2009: Recession, followed by discussion on rising income inequality.
- 2 Onset of COVID-19 pandemic: Income gap began increasing annually.
- 3 First quarter of 2025: Income inequality reached a record high of 49 percentage points.
- Increased economic distress, particularly for young people
- Widening wealth gap (top 20% hold 64.7% of net worth, bottom 40% hold 3.3%)
- Calls for public policy to address the distribution of wealth and ensure a decent quality of life
What: Income inequality in Canada reached a record high, with the gap between top 40% and bottom 40% of income distribution growing to 49 percentage points.
When: First quarter of 2025. The gap has increased each year following the onset of the COVID-19 pandemic.
Where: Canada.
Why: Highest-income households gained from investments and maintained jobs during the pandemic, while lowest-income households saw wages decline (0.7% decrease) and net investment income fall (35.3% decrease). Economic uncertainty is contributing to distress for young people.
How: Statistics Canada collected and analyzed data on disposable income and net worth across different income quintiles.