{"id":2348,"date":"2025-10-09T18:45:27","date_gmt":"2025-10-09T18:45:27","guid":{"rendered":"https:\/\/www.worldpumpnews.com\/?p=2348"},"modified":"2025-10-09T18:45:27","modified_gmt":"2025-10-09T18:45:27","slug":"income-gap-is-at-record-high-amid-weakening-economy-statcan-says-national","status":"publish","type":"post","link":"https:\/\/www.worldpumpnews.com\/?p=2348","title":{"rendered":"Income gap is at \u2018record high\u2019 amid weakening economy, StatCan says – National"},"content":{"rendered":"

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The income gap in Canada remains at a \u201crecord high,\u201d according to newly released data, which highlights the growing divide between the wealthiest groups and those struggling with affordability \u2014 especially the youngest households.<\/p>\n

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In addition, the wealthiest households continue to hold the vast majority of all wealth in Canada, and that trend continues to grow.<\/p>\n

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.<\/p>\n

The trade war with the United States and President Donald Trump\u2019s 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.<\/p>\n

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 \u2014 the same as in 2024 as the economy continues to face challenges.<\/p>\n

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\u201cThe 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,\u201d Statistics Canada said in the report.<\/p>\n

\u201cThe 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.\u201d<\/p>\n

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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.<\/p>\n

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Disposable incomes, the amount of money a person or household has left over after all taxes and mandatory charges, did increase in the second quarter of 2025 by 3.9 per cent compared with last year, but that compares with a 5.9 per cent increase in 2024 compared with 2023.<\/p>\n

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As costs for goods and services increase with inflation, measured by the consumer price index, that means those disposable income gains may be worth relatively less than last year.<\/p>\n

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Statistics Canada highlights how income growth may be slowing because of a cooling economy and labour market.<\/p>\n

\u201cWeak employment gains along with a downturn in economic activity contributed to a slower increase in disposable income for households in the second quarter,\u201d Statistics Canada says in its report.<\/p>\n

\u201cData from the Labour Force Survey show that the employment rate\u2014the proportion of the employed population aged\u00a015\u00a0and older\u2014has been on a downward trend since early 2023, with most employment gains derived from part-time work.\u201d<\/p>\n

Data also shows that the more wealth a household has in Canada, the more its net worth has grown compared with lower-wealth households.<\/p>\n