However,
Income gap between rich poor:
The global net value of Canadian households increased in the first quarter of 2025. Therefore, compared to the same period last year. However, the income gap between the richest and the poorest households has reached a historic summit. Nevertheless, This gap has widened a little more each year from the Cavid-19 pandemic. Nevertheless,
“Households with the highest income have benefited from investments. Consequently, while those with the lowest income displayed a drop in wages,” sums up the report of the report Statistics Canada, Economic accounts of the Canadian Household Sector Distributed according to income, consumption, savings and assets, the first quarter of 2025. For example,
“The income gap is defined as the gap from disposable income between households in the 40 % higher tranche in the distribution of income. In addition, those of the 40 % lower tranche,” explains Statistics Canada. income gap between rich poor In the first quarter of 2025, this gap reached a historic summit of 49.0 percentage points. The lowest level recorded was 43.8 percentage points in the first quarter of 2021.
“The heritage gap between households in the upper tranche of 20 % and those of the 40 % lower tranche was 61.4 percentage points in the first quarter of 2025”, adds the federal body.
Disposable income – Income gap between rich poor
Household interest payments decreased by 4.8 % on average in the first quarter of 2025 compared to that of 2024. The available income, all categories combined, experienced growth of 6 %. The poorest households (the 20 %lower slice) have the lowest growth.
This is largely explained by the drop in wages, attributable to a decrease in the number of hours worked. Low -income households, nuances the report, are more prone to job loss in times of economic slowdown.
“Households with the income gap between rich poor lowest income have also experienced the highest reduction in net income income. the decrease in investment income (-399 $; -35.3 %) having more than offset the drop in payments of interest (-107 $; -7.1 %),” said the report.
Conversely. “the average household disposable income with the highest income (the 20 % upper branch of the distribution of income) increased to the fastest rate of all categories of income in the first quarter of 2025 compared to a year earlier ( +$ 3,748; +7.7 %). These figures are mainly attributable to gains in average wages ( +$ 2,441; +4.7 %) and in investment income ( +$ 1,070; +7.4 %) ”. For these same reasons, their savings also experienced the greatest increase.
Households in the middle class. that is, those located in the 60 % of the income distribution, saw their income grow at a rate lower than the average income gap between rich poor households in the first quarter of 2025.
Although their wages increased by 4.4 %, at the same rate as the average of all households, their placement income fell 2.1 % compared to the previous year.
Unequal possession of wealth
The richest 20 % hold 64.7 % of the total net value of households in Canada, with an average of $ 3.3 million per household. The poorest 40 % have only 3.3 % of national wealth, with an average net value of $ 85,700.
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