Canada’s income and wealth divides widened sharply at the start of the year, with Statistics Canada reporting that the spread in disposable income between households in the top 40 per cent and those in the bottom 40 per cent reached a record 49 percentage points in the first quarter of 2025. The deterioration reflects contrasting fortunes. Average disposable income for the top 20 per cent of earners rose 7.7 per cent from a year earlier, lifted by a 4.7 per cent gain in wages and a 7.4 per cent increase in investment earnings. By contrast, disposable income for the bottom quintile grew just 3.2 per cent as their wages slipped 0.7 per cent and investment income plunged 35.3 per cent, partially offset by a 31.2 per cent jump in government transfers. Net worth disparities also deepened. The wealthiest 20 per cent of households controlled 64.7 per cent of the country’s total net worth—about C$3.3 million per household—while the bottom 40 per cent accounted for only 3.3 per cent, averaging C$85,700. Statistics Canada said the gaps have widened every year since the onset of the COVID-19 pandemic, underscoring the uneven recovery and the outsized role of investment income in driving gains for higher-income Canadians.