Poor Canadians Get Poorer In 2025

As the wealthy grow richer and the poor slide further down the poverty ladder, Canada’s wealth divide has reached its highest point ever.

A new report from Statistics Canada reveals that the gap in disposable income between the top 40% and the bottom 40% of households has reached a record 49% in the first quarter of 2025, marking the widest income disparity in the country’s history. This gap has steadily increased year after year since the pandemic.

These numbers highlight a troubling rise in inequality.

Life is particularly challenging for Canadians in the bottom 20%. Their disposable income saw only a slight increase of 3.2% in the first quarter, while their work hours were reduced and wages dipped by 0.7%. Additionally, their investment income plummeted by a staggering 35.3%.

In contrast, the top 20% experienced a significant increase in disposable income, rising by 7.7%—the largest gain among all groups. Wealthy households now control nearly two-thirds of Canada’s total net worth, with an average household in this group amassing $3.3 million.

On the other end of the spectrum, the bottom 40% of Canadians collectively own less than 4% of the nation’s wealth, with an average net worth of less than $100,000 per household.

The middle class is also under pressure, as their income grew by only 4.9%—barely enough to keep up with the rising cost of living.

These figures come amid rising job losses across Canada over the past two years. Many individuals over the age of 15 are now relying on social assistance and Employment Insurance to survive. However, due to increasing demand, some people have been unable to access these services.

 The widening wealth gap indicates a country in crisis. As this divide continues to grow, those at the bottom are being hit hardest, and for them, survival is a daily battle with no relief in sight.

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