Statistics Canada reported on Monday that the income disparity in Canada widened in the previous year due to growth in financial markets, reduced interest earnings, and a weakening job market. The agency stated that the income gap between the top 40% and bottom 40% households in terms of disposable income reached 46.7 percentage points in 2025, slightly higher than the 46.4 percentage points recorded a year earlier.
The increase in the income gap was attributed to slower wage growth for low-income households compared to the national average, as well as a decline in investment income caused by decreased interest payments on savings. Additionally, data from Statistics Canada revealed that the top 20% of wealth holders in Canada possessed 65.7% of the country’s total net worth by the end of 2025, with an average household net worth of $3.5 million. In contrast, the bottom 40% of wealth holders only accounted for three percent of Canada’s net worth, averaging $81,650 per household.
Furthermore, the wealth gap between the top 20% and the bottom 40% increased to 62.7 percentage points at the close of 2025, rising by 0.6 percentage points from the previous year. MNP Ltd., a firm specializing in insolvency practice, noted that the growing wealth disparity was reflected in financial surveys, despite indications of overall economic stability. The company mentioned that its debt index based on surveys remained stable over the past year, with Canadians displaying cautious spending behavior. However, financial strains were unevenly distributed, with some individuals struggling to meet financial obligations while others refrained from significant financial decisions.
Grant Bazian, the president of MNP Ltd., highlighted that many Canadians were facing financial challenges amidst an increasingly uncertain economic environment, making financial planning and budgeting more complex.