Average Income in Canada for 2023
- In 2023, the average income in Canada is estimated to be $59,300, marking a significant increase from the 2021 average of $54,000.
- The year 2023 witnessed a 3% decrease in average income, primarily due to COVID-19 restrictions impacting the Canadian economy.
- As of March 2022, the Canadian economy demonstrated resilience with an addition of 72,500 jobs, marking an important step in recovery post the COVID-19 pandemic.
- In December 2022, a total of 850,000 job vacancies were recorded, providing employment opportunities across various sectors.
- The average hourly rate for households in Canada is noted to be $36.28, leading to an annual average household income exceeding $75,452.
What is the average Canadian salary?
According to the latest stats from the Labour Force Survey, it’s currently sitting at $59,300 per year.
And if you’re curious about previous years, the 2020 income survey found that Canadians earned an average of $51,300 with a median income of $39,500.
Median Income of Canada
- The median income in Canada witnessed a slight decrease from $41,200 in 2021 to around $40,800 in 2022.
- Salary growth rates exhibited variation across provinces and territories, reflecting the diverse economic dynamics of the nation.
- Provinces such as Alberta and British Columbia, alongside the territories of Northwest, Yukon, and Nunavut, were recognized for their high average wages.
- In terms of sectors, industries like Real Estate and Finance and Insurance saw noteworthy salary growth, while areas like Arts, Entertainment, and Recreation exhibited the fastest pay growth, clocking in at an impressive 26.3% in 2021.
- Contrarily, industries such as Management of Companies and Enterprises and Forestry and Timber Harvesting witnessed a decline or stagnation in pay during the same period.
Fastest Growing Industries in Canada
- In 2021, the Arts, Entertainment, and Recreation industry saw the highest pay growth in Canada at 26.3%.
- The Real Estate industry followed closely behind with a 21.7% increase in average Canadian income.
- Another industry with rapid salary growth was the Finance and Insurance sector, experiencing a 19.5% rise in average yearly income from 2020 to 2021.
- Employed individuals in these sectors experienced the fastest salary growth rates in the country.
- In 2021, the number of jobs in these industries increased by 7%, a significant boost compared to the 3% decrease in 2020 due to COVID-19 restrictions.
- The surge in salaries in these sectors contributed to an overall increase in the average Canadian income to $59,300 in 2022.
- This trend of high income growth in these sectors shows a resilient Canadian economy recovering quickly with 72,500 jobs added in March 2022 alone.
- However, it’s worth noting that while these industries are growing rapidly, the average income varies greatly within each sector.
- The aggregate income in these industries in 2021 amounted to $634 billion, a substantial increase from the previous years.
Industries with Falling Average Yearly Income in Canada
- While some industries saw rapid income growth, others experienced a decline in average Canadian income.
- In 2021, the Management of Companies and Enterprises industry saw a drop of 2.3% in its average yearly income.
- Another industry with a declining average yearly income was the Forestry and Timber Harvesting industry, where the average income remained unchanged in 2021.
- The average income in these industries in 2020 was $53,800, which fell to $52,600 in 2021.
- These sectors suffered due to several economic factors, including the COVID-19 pandemic and its subsequent restrictions, which led to job losses and slower growth.
- Despite the decline in these sectors, they only represent a small portion of the total employment income in Canada.
- It is crucial to note that while the average income in these sectors fell, the median income remained relatively stable, indicating that the majority of workers’ earnings were not dramatically affected.
Canada’s Lowest-Paying Job Sectors
- In 2021, the Arts, Entertainment, and Recreation sector reported the lowest average income in Canada, earning less than $27,000 annually.
- Retail, another of the country’s lowest-paying job sectors, showed an average income of around $30,000 in 2021.
- Workers in these sectors generally earned less than half the national average income of $59,300 reported in 2022.
- In 2020, employees in the Retail sector saw a significant decrease in their earnings, a drop from $31,800 to $30,000, due to the impact of COVID-19 restrictions.
- Interestingly, in the 5-year period from 2017 to 2022, the average income in these sectors increased by only 2%, significantly lower than the overall average salary growth in Canada.
- According to the 2016 census, over 634,800 individuals were employed in the Retail sector, making it one of the largest employment sectors in the country despite its lower wages.
Canada’s General Income Statistics
- In 2021, Statistics Canada reported that the average income of Canadian workers was $54,000, while the median income was lower at $41,200.
- By the end of 2022, the average Canadian income rose slightly to $59,300 per year.
- It’s worth noting that, according to the income distribution data, 15.7% of Canadians earned $100,000 or more per year in 2019.
- On the other hand, a larger fraction of the population, 17.6% to be precise, earned an annual income between $60,000 and $79,000.
- As of January 2022, workers were earning an average of $1,050.59 per week, which translates to an annual income of around $54,630.
- There was a noticeable disparity between the genders with women earning 76.8 cents for every dollar earned by men in 2019.
- Furthermore, Indigenous Canadians earned approximately 70 cents for every dollar made by non-Indigenous Canadians, reflecting income inequality within the population.
- Finally, the top 1% of earners in Canada had an impressive average yearly income of $685,000 in 2021, illustrating the wide income distribution gap in the country.
Income Disparity in Canada
- In the last four decades from 1976 to 2021, income disparity in Canada saw a decrease of nearly 30%, attributed largely to the implementation of a progressive tax system.
- The average Canadian income in 2021 was $54,000, which represents a substantial growth when compared to the income of $53,634 in 1981.
- The gender wage gap has persistently remained a cause of income disparity, with women earning 76.8 cents for every dollar earned by men in 2019.
- The age of the head of household also significantly influences income levels; for instance, Canadian households with a head of household aged 65 or older had a lower average income in comparison to households led by younger individuals.
- Significant income disparity also exists among different age groups, with individuals aged between 45 to 54 earning an average of $66,968 per year, which is significantly higher than younger generations.
- Indigenous Canadians face a stark income disparity, earning approximately 70 cents for every dollar made by non-Indigenous Canadians, highlighting the income inequality in the country.
- The top 1% of income earners in Canada had an average yearly income of $685,000 in 2021, contributing to income disparity.
- The Canadian province or territory of residence also contributes to income disparity, with certain populous provinces like Alberta and Ontario reporting higher average incomes compared to others.
- Income disparities are also noticeable among different industry sectors in Canada. For instance, sectors such as Real Estate, Finance and Insurance, and Management of Companies and Enterprises typically have higher average incomes compared to sectors such as Arts, Entertainment, and Recreation, and Retail.
- In terms of geographical location, Toronto and Calgary have the highest income inequality in Canada, while Atlantic Provinces and Quebec report higher income equality.
Income of Individuals by Age Group, Sex, and Income Source
- Statistics Canada’s data for the reference period 1976-2021 show a notable variation in income among individuals based on age group, sex, and income source.
- As of 2021, there were 30,635,000 persons with income in Canada, contributing to an aggregate income of $1.65 trillion.
- Among different age groups, Canadians aged 45 to 54 had the highest average income at $66,968 per year.
- By gender, men earned more than women, with women earning 76.8 cents for every dollar earned by men in 2019, highlighting the persisting gender wage gap in the country.
- Income sources also influence the overall income of individuals in Canada. For instance, self-employed persons generally have higher incomes compared to employees, and investment income and capital gains also contribute significantly to individuals’ total income.
- Statistics Canada’s data show that the average income for Millennials, after taxes, was $44,093 in 2021.
- By contrast, almost 2 million seniors in Canada subsist on less than $17,000 each year, emphasizing the disparities in income by age group.
- In terms of income source, the top 1% income earners in Canada had an average yearly income of $685,000 in 2021, primarily from high-paying jobs