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The average income in Canada is $63,200. This figure encapsulates the earnings across diverse professions, regions, and demographics, offering a snapshot of the economic situation in the country.
Understanding income statistics holds immense significance for professionals, job seekers, and policy-makers. Professionals, especially those managing finances, benefit from these figures as they shape savings, investments, and budgeting strategies.
Job seekers can gauge potential earnings across industries, helping them make sound career decisions and negotiations.
Meanwhile, policymakers rely on income statistics to create economic policies, understand income inequality, and address societal financial gaps effectively.
Key income statistics in Canada
The average income in Canada as of September 2023 has increased to roughly $63,200; a $3,900 increase compared to 2022. All provinces are experiencing average salary growth, primarily thanks to minimum wage increases.
Canada is also doing good compared to other high-earning countries, as can be evidenced below:
| Country | 2022 Average | 2023 Average | Trend |
|---|---|---|---|
| Canada | ~$59,300 | ~$63,200 | +$3,900 (6.57%) |
| USA | ~$74,500 | ~$74,700 | +$200 (0.26%) |
| United Kingdom | ~$40,700 | ~$44,000 | +$3,300 (8.10%) |
| France | ~$45,000 | ~$42,400 | -$2,600 (-6.88%) |
| Spain | ~$31,400 | ~$29,100 | -$2,300 (-7.43%) |
| Germany | ~$30,900 | ~$30,800 | -$100 (-0.32%) |
| Australia | ~$59,400 | ~$68,900 | +$9,500 (16%) |
| Japan | ~$37,300 | ~$41,600 | +$4,300 (11.52%) |
| Italy | ~$29,100 | ~$29,700 | -$600 (-2.06%) |
Initial projections for 2024 seem positive based on the fact that all Canadian provinces had an increase in average wages in 2023 compared to the years prior. However, due to minimum wage increases not being a yearly occurrence, we might see the numbers stagnate.
A breakdown of average income in Canada by job sector can be found below (all growth/decline percentages are compared to 2022):
| Sector | Average Annual Income | Growth/Decline |
|---|---|---|
| Mining, Oil, and Gas Extraction | ~$117,000 | -2.3% |
| Utilities | ~$110,600 | +10.3% |
| Professional, Scientific, and Technical Services | ~$90,800 | +6.5% |
| Management of Enterprises and Companies | ~$88,000 | +13.4% |
| Information and Culture | ~$86,700 | +2.8% |
| Finance and Insurance | ~$82,800 | -7.6% |
| Public Administration | ~$80,700 | +1.3% |
| Construction | ~$78,500 | +3.6% |
| Wholesale Trade | ~$74,800 | +2.7% |
| Forestry and Logging | ~$74,000 | +0.9% |
| Manufacturing | ~$69,100 | +6.5% |
| Transportation and Warehousing | ~$65,200 | +2.2% |
| Real Estate (Leasing/Renting) | ~$63,200 | +0.9% |
| Education | ~$61,800 | +3.8% |
| Health Care and Social Assistance | ~$56,000 | +5.9% |
| Administrative and Support | ~$53,500 | +7.9% |
| Arts, Entertainment, and Recreation | ~$38,000 | +0.2% |
| Retail | ~$37,000 | +0.8% |
| Accommodation and Food Services | ~$25,400 | +4.2% |
Key observations
- Highest Paid Industries:
- Mining, Oil, and Gas Extraction - $117,000
- Utilities - $110,600
- Professional, Scientific, and Technical Services - $90,800
- Management of Enterprises and Companies - $88,000
- Information and Culture - $86,700
- Lowest Paid Industries:
- Accommodation and Food Services - $25,400
- Retail - $37,000
- Arts, Entertainment, and Recreation - $38,000
- Administrative and Support - $53,500
- Health Care and Social Assistance - $56,000
- Fastest Growing Industries:
- Management of Enterprises and Companies - 13.4%
- Utilities - 10.3%
- Administrative and Support - 7.9%
- Professional, Scientific, and Technical Services + Manufacturing - 6.5%
- Health Care and Social Assistance - 5.9%
- Slowest Growing/Declining Industries:
- Finance and Insurance - (-7.6%)
- Mining, Oil, and Gas Extraction - (-2.3%)
- Arts, Entertainment, and Recreation - 0.2%
- Retail - 0.8%
- Real Estate (Leasing/Renting) + Forestry and Logging - 0.9%
The most surprising sectors in 2023 are definitely the only two that have experienced financial decline.
The Financial factor has dropped by a whopping 7.6%, mainly due to the volatility of the financial market. These changes are relatively normal year in-year out (especially when we consider that it had an 18% wage increase in 2022).
On the other hand, the Mining industry has fallen by roughly 2.3% which is not that much seeing how this industry is one of the backbones of the Canadian economy. It offers the highest wages compared to other sectors, with only Utilities being relatively close in terms of income capacity.
Regional variations in average income
There are heavy variations between Canadian provinces, primarily due to geographical location, job types, and other metrics. These variations are also present in how much economic growth has occurred in each province.
| Province | 2022 Average | 2023 Average | Trend |
|---|---|---|---|
| Nunavut | ~$82,900 | ~$83,300 | +$400 (0.49%) |
| Northwest Territories | ~$81,100 | ~$82,800 | +$1,700 (2.09%) |
| Yukon | ~$69,400 | ~$71,900 | +$2,500 (3.60%) |
| Alberta | ~$65,800 | ~$67,200 | +$1,400 (2.12%) |
| Ontario | ~$62,700 | ~$64,600 | +$1,900 (3.03%) |
| British Columbia | ~$61,200 | ~$64,000 | +$2,800 (4.57%) |
| Newfoundland & Labrador | ~$60,300 | ~$62,600 | +$2,300 (3.81%) |
| Saskatchewan | ~$60,000 | ~$61,000 | +$1,000 (1.66%) |
| Quebec | ~$58,100 | ~$60,500 | +$2,400 (4.13%) |
| Manitoba | ~$55,500 | ~$57,400 | +$1,900 (3.42%) |
| New Brunswick | ~$56,300 | ~$57,400 | +$1,100 (1.95%) |
| Nova Scotia | ~$53,000 | ~$55,600 | +$2,600 (4.90%) |
| Prince Edward Island | ~$51,300 | ~$53,000 | +$1,700 (3.31%) |
*All data is sourced from Statistics Canada
Key observations
- Highest Average Income Increase in Amount:
- British Columbia - $2,800
- Nova Scotia - $2,600
- Yukon - $2,500
- Quebec - $2,400
- Newfoundland & Labrador + Nunavut - $2,300
- Highest Average Income Increase in %:
- Nova Scotia - 4.90%
- British Columbia - 4.57%
- Quebec - 4.13%
- Newfoundland & Labrador - 3.81%
- Yukon - 3.60%
- Lowest Average Income Increase in Amount:
- Nunavut - $400
- Saskatchewan - $1,000
- New Brunswick - $1,100
- Alberta - $1,400
- Northwest Territories + Prince Edward Island - $1,700
- Lowest Average Income in %:
- Nunavut - 0.49%
- Saskatchewan - 1.66%
- New Brunswick - 1.95%
- Northwest Territories - 2.09%
- Alberta - 2.12%
- Highest Earning Provinces in 2023:
- Nunavut - $83,300
- Northwest Territories - $82,800
- Yukon - $71,900
- Alberta - $67,200
- Ontario - $64,600
- Lowest Earning Provinces in 2023:
- Prince Edward Island - $53,000
- Nova Scotia - $55,600
- Manitoba + New Brunswick - $57,400
- Quebec - $60,500
- Saskatchewan - $61,000
To be considered among the top 1% of earners in Canada, you’d have to earn an average of $315,900 in annual income. We’ll talk more about these percentiles later in the article.
Income distribution by age
Income distribution by age varies wildly from age group to age group. It’s essential that Canadians are aware of the financial challenges of certain age groups as well as how they compare to each other.
| Age Group | Year | Average Income |
|---|---|---|
| 16-24 | 2018 | $17,700 |
| 2019 | $17,900 | |
| 2020 | $21,800 | |
| 2021 | $20,000 | |
| 25-34 | 2018 | $48,500 |
| 2019 | $49,000 | |
| 2020 | $51,900 | |
| 2021 | $53,500 | |
| 35-44 | 2018 | $64,000 |
| 2019 | $64,500 | |
| 2020 | $68,000 | |
| 2021 | $68,000 | |
| 45-54 | 2018 | $68,900 |
| 2019 | $69,800 | |
| 2020 | $69,700 | |
| 2021 | $73,200 | |
| 55-64 | 2018 | $57,000 |
| 2019 | $56,700 | |
| 2020 | $58,700 | |
| 2021 | $61,400 | |
| 65+ | 2018 | $43,700 |
| 2019 | $42,800 | |
| 2020 | $44,700 | |
| 2021 | $44,300 |
Statistics Canada. Table 11-10-0239-01 Income of individuals by age group, sex and income source, Canada, provinces and selected census metropolitan areas
Key observations
- Biggest Average Income Increase per Age Group per Amount (2018-2021):
- 25-34 - $5,000 (10.3%)
- 55-64 - $4,400 (7.7%)
- 45-54 - $4,300 (6.2%)
- Smallest Average Income Increase per Age Group per Amount (2018-2021):
- 65+ - $600 (1.3%)
- 16-24 - $2,300 (13%)
- 35-44 - $4,000 (6.3%)
- Highest Average Earnings per Age Group:
- 45-54 - $73,200
- 35-44 - $68,000
- 55-64 - $61,400
- 25-34 - $53,500
- 65+ - $44,300
- 16-24 - $20,000
We can deduce a lot of information from these metrics. For starters, it’s evident that the golden age of careers is between 45 and 54, as these years seem most profitable. Experience can partly be attributed to this fact but we also mustn’t forget that people in this age bracket often have the necessary skills for work that is better paid.
They also might be more inclined to work riskier jobs due to the skills and experience these jobs require.
Surprisingly, the 16-24 age group has experienced the largest average income increase percentage-wise, jumping by an impressive 13%. One of the reasons is that young people who have recently finished college are getting accepted more often (and with better pay) in specific industries, such as Health Care.
The good news across the board is that every age group has had an increase in average income compared to a few years back (even the 65+ group with their small $600 increase). While inflation is partly to blame for this increase, the biggest reason is that virtually all industries and sectors have become more profitable.
Gender income gap
The gender income gap is present in Canada as well and it might not be as small as the general population thinks.
| Gender | Year | Income |
|---|---|---|
| Male | 2017 | $59,600 |
| 2018 | $59,500 | |
| 2019 | $58,800 | |
| 2020 | $60,600 | |
| 2021 | $62,000 | |
| Female | 2017 | $42,100 |
| 2018 | $42,300 | |
| 2019 | $42,900 | |
| 2020 | $45,700 | |
| 2021 | $46,100 |
Statistics Canada. Table 11-10-0239-01 Income of individuals by age group, sex and income source, Canada, provinces and selected census metropolitan areas
Key observations:
- Average Annual Income Increase for Males (2017-2021) - +$2,400
- Average Annual Income Increase for Females (2017-2021) - +$4,000
- Gender Gap Amount per Year:
- 2017 - $17,500 (41.6%)
- 2018 - $17,200 (40.6%)
- 2019 - $15,900 (37.0%)
- 2020 - $14,900 (32.6%)
- 2021 - $15,900 (34.5%)
Some progress has been made to reduce the gender gap but it remains at a high 34.5%. Part of the reason is that there aren’t as many female workers in the highest-paying industries (Mining, Oil, and Gas Extraction especially) but - it’s also down to the overall social status of women in most career sectors.
Education plays a huge role in removing the social stigma that ‘women aren’t good workers’ in certain careers. The Scientific sector, for example, is notorious for being filled with hurdles that women have to push through in order to reach the highest-respected and most-paid positions.
Educating the wider masses can help prevent gender-based violence and can, in turn, open new doors to women who want to reach the highest echelons of career progression, even in traditionally male-dominated industries.
We should see this gap continue decreasing in the coming years but by what amounts remains to be seen.
Indigenous vs. non-Indigenous average income in Canada
Similarly to the gender gap, there is also income disparity when it comes to the indigenous and non-indigenous populations.
| Year | Indigenous Average Income* | Non-Indigenous Average Income* | Difference |
|---|---|---|---|
| 2012 | $36,600 | $47,200 | $10,600 (28.9%) |
| 2013 | $38,600 (+5.4%) | $47,800 (+1.2%) | $9,200 (23.8%) |
| 2014 | $40,500 (+4.9%) | $48,600 (+1.6%) | $8,100 (20.0%) |
| 2015 | $37,500 (-7.6%) | $48,900 (+0.6%) | $11,400 (30.4%) |
| 2016 | $40,700 (+8.5%) | $48,400 (-1.1%) | $7,700 (18.9%) |
| 2017 | $39,300 (-3.4%) | $49,900 (+3.1%) | $10,600 (27.0%) |
| 2018 | $40,200 (+2.3%) | $50,100 (+0.4%) | $9,900 (24.6%) |
| 2019 | $41,300 (+2.7%) | $49,900 (-0.4%) | $8,600 (20.8%) |
| 2020 | $42,000 (+1.7%) | $52,600 (+5.4%) | $10,600 (25.2%) |
| 2021 | $44,300 (+5.4%) | $53,300 (+1.3%) | $9,000 (20.3%) |
*Percentage is compared to the previous year of the same column
Source: Statista
Between 2012 and 2021, there was only one year where the average income difference between indigenous and non-indigenous people was less than 20% - 2016. The indigenous average had a spike of 8.5% while the non-indigenous average fell by 1.1%.
Every other year, the difference was higher than 20%, with 2015 being the most egregious example at 30.4%.
The average annual indigenous income in Canada remains below $45,000 and we aren’t seeing a downward trend to close the difference as we are with the gender gap.
Top earners in Canada
Following the Covid-19 pandemic, Canada’s financial bounce-back has produced even further inequality between its top and bottom earners.
2021 saw an average income increase of 9.4% (to $579,100) for the top 1% of Canada’s earners. This number doesn’t include capital gains. Furthermore, the top 0.1%’s average earnings increased by 17.4% (to $2,086,100), while the top 0.01% saw an increase of 25.7% (to $7,731,400).
Comparatively, the bottom 50% experienced a decrease in their average earnings by $1,400 (to $21,100, compared to 2020).
On a positive note, women now represent a larger portion of Canada’s top earners, rising from 25.4% in 2020 to 26.1% in 2021. As far as this trend is concerned, it seems to be on a consistent upward trajectory which may eventually contribute to the reduction of the gender gap.
Minimum wage variations across provinces
| Province | Wage | Effective Date | Upcoming Adjustments |
|---|---|---|---|
| Ontario (Home Workers) | $18.20 | Oct. 1, 2023 | Oct. 1, 2024 |
| Yukon | $16.77 | Apr. 1, 2023 | / |
| British Columbia | $16.75 | Jun. 1, 2023 | Jun. 1, 2024 |
| Canada Labour Code | $16.65 | Apr. 1, 2023 | / |
| Ontario (General + Liquor Services) | $16.55 | Oct. 1, 2023 | Oct. 1, 2024 |
| Northwest Territories | $16.05 | Sept. 1, 2023 | Sept. 1, 2024 |
| Nunavut | $16.00 | Apr. 1, 2020 | / |
| Ontario (Students Under 18) | $15.60 | Oct. 1, 2023 | Oct. 1, 2024 |
| Manitoba | $15.30 | Apr. 1, 2023 | Oct. 1, 2024 |
| Quebec (General) | $15.25 | May 1, 2023 | May 1, 2024 |
| Alberta | $15.00 | Oct. 1, 2023 | / |
| Newfoundland & Labrador | $15.00 | Apr. 1, 2023 | Apr. 1, 2024 |
| Nova Scotia | $15.00 | Apr. 1, 2023 | Apr. 1, 2024 |
| Prince Edward Island | $15.00 | Jan. 1, 2023 | Apr. 1, 2024 |
| New Brunswick | $14.75 | Apr. 1, 2023 | Apr. 1, 2024 |
| Saskatchewan | $14.00 | Oct. 1, 2023 | Oct. 1, 2024 |
| Alberta (Students Under 18) | $13.00 | June 26, 2019 | / |
| Quebec (Tip-Receiving Employees) | $12.20 | May 1, 2023 | May 1, 2024 |
Comparison with international average income
| Country | 2023 Average | Comparison to Canada (~$63,200) |
|---|---|---|
| USA | $74,700 | +$11,500 (+18.2%) |
| United Kingdom | $44,000 | -$19,200 (-30.4%) |
| France | $42,400 | -$20,800 (-32.9%) |
| Germany | $30,800 | -$32,400 (-51.3%) |
| Italy | $29,700 | -$33,500 (-53%) |
| Japan | $41,600 | -$21,600 (-34.2%) |
| European Union* | $26,900 | -$36,300 (-57.4%) |
*While not a singular country, the EU acts as another G7 partner
Conclusion
Canada is among the world’s top countries when it comes to average income but it isn’t without its flaws. The gender gap still exists, indigenous peoples are paid far less than non-indigenous ones, and the disparity between certain provinces is quite large.
However, not all is gloomy for the average Canadian citizen. We’re seeing growth appear in aspects of Canada’s finances, from growing industries to minimum wage increases.
On top of that, movement is also happening on the gender gap front, albeit at a slower pace than needed.