Statistics Canada: Wealth and Income Inequality Worsens in 2025

The income and wealth inequality in Canada worsened in 2025, according to statistics released by Statistics Canada. The income gap between the wealthiest and the poorest households expanded, indicating a troubling trend in economic disparity across the nation.

Income Inequality in Canada

In 2025, the income gap measured 46.7 percentage points, a slight increase from 46.4 points in 2024. This figure represents the disparity in disposable income between households in the top 40 percent and those in the bottom 40 percent. The gradual widening of this gap highlights the financial challenges faced by low-income households.

Wealth Distribution

Statistics Canada reported that the top 20 percent of households in Canada accounted for a staggering 65.7 percent of the nation’s total net worth by the end of 2025. The average net worth of these households reached approximately $3.5 million, underscoring significant wealth concentration at the top.

• Top 20% of wealth distribution: 65.7% of total net worth
• Average net worth: $3.5 million per household
• Bottom 40% of wealth distribution: 3% of total net worth
• Average net worth: $81,650 per household
• Wealth gap: 62.7 percentage points, up from previous year

Financial Pressures on Canadians

Insolvency practice MNP Ltd. noted that while there’s overall stability in financial sentiments, significant disparities remain. Their debt index has remained stable, even as Canadians exercise caution with their spending.

As of March 2025, the average amount Canadians had left at the end of the month reached a record high of $1,000, up from $907 in November 2024. However, financial pressures persist:

• 43% of Canadians are within $200 of being unable to meet monthly expenses.
• 29% report not earning enough to cover their bills and debt payments, a rise from 25%.

Consumer Confidence

A recent survey by Ipsos, involving 2,000 adult Canadians, highlighted that many individuals are cautious about making significant financial decisions. Approximately 75% of respondents expressed concern over rising prices for essential goods.

Grant Bazian, president of MNP Ltd., remarked that Canadians are navigating an uncertain financial landscape, making it increasingly challenging to plan and budget for their needs. The ongoing economic shifts continue to influence consumer confidence and spending habits.

The statistics from Statistics Canada illustrate the growing divide in wealth and income, raising concerns about economic equity and future financial stability in Canada.