The income disparity in Canada widened last year due to market gains, reduced interest earnings, and a softening job market, according to Statistics Canada. The gap in disposable income share between the top 40% and bottom 40% households increased to 46.7 percentage points in 2025, up from 46.4 points the previous year.
This widening gap was driven by slower wage growth for low-income households, decreased investment income from lower interest rates, and a disparity in wealth distribution. Statistics Canada reported that the top 20% of households held 65.7% of Canada’s total net worth, with an average of $3.5 million per household. In contrast, the bottom 40% only held three percent of the nation’s net worth, averaging $81,650 per household.
The disparity in wealth between the top 20% and the bottom 40% increased to 62.7 percentage points by the end of 2025, up 0.6 points from the previous year. Insolvency firm MNP Ltd. highlighted the growing wealth divide, noting stability in financial surveys but uneven financial pressures. The firm’s debt index remained steady as Canadians became more cautious in spending, with some struggling to cover expenses and debt payments while others postponed significant financial decisions.
Grant Bazian, president of MNP Ltd., emphasized the challenges faced by Canadians in managing financial uncertainties and planning for the future in an evolving economic environment.