Income gap is at ‘record high’ amid weakening economy, StatCan says

Canada's income divide remains at record high levels, according to Statistics Canada, which adds that the top 20 per cent hold the majority of household net worth in Canada.

The income gap in Canada remains at a “record high,” according to newly released data, which highlights the growing divide between the wealthiest groups and those struggling with affordability — especially the youngest households.

In addition, the wealthiest households continue to hold the vast majority of all wealth in Canada, and that trend continues to grow.

This comes as multiple reports show that unemployment is on the rise in Canada, and as households continue to struggle with the cost of living and housing affordability.

The trade war with the United States and President Donald Trump’s tariff policies have also increased the economic challenges facing Canadian businesses and households alike, with higher costs for goods and services one of the main effects.

According to Statistics Canada, during the second quarter of 2025, from April through June, the income gap remained at an all-time high of 48.4 per cent — the same as in 2024 as the economy continues to face challenges.

“The income gap remained at a record high in the second quarter of 2025, unchanged from the previous year, amid a weakening economy that negatively affected household income and net saving across the income distribution,” Statistics Canada said in the report.

“The wealth gap grew as strong financial market gains benefited the wealthiest, while a decline in real estate values weighed on the average wealth of younger age groups and the least wealthy.”

The agency says the income gap is a measure of the distribution of disposable income across the country, specifically the difference between households with the top 40 per cent of disposable income compared with the bottom 40 per cent.