Canada's Income and Wealth Gaps Widen in Q3 2025

OTTAWA - Canada's income and wealth disparities widened in the third quarter of 2025, driven by robust gains in financial markets that disproportionately benefited higher-income households, according to data from Statistics Canada.

The agency reported that the difference in the share of disposable income between households in the top 40 percent and those in the bottom 40 percent of the income distribution increased to 47.5 percentage points during the July-to-September period, up from 46.3 percentage points in the same quarter of 2024. This marked a continuation of trends highlighting growing economic divides across the country.

Households in the bottom 20 percent experienced a slight decline in average disposable income, falling 0.5 percent compared to the previous year. They were the only income group to see no growth during the quarter. In contrast, the top 20 percent of income earners posted a 4.3 percent rise in average disposable income over the same period. These shifts reflect broader patterns where investment returns and capital gains, fueled by strong stock market performance, accrued mainly to wealthier families with greater exposure to financial assets.