Survey reveals growing gap between stagnant wages and rising costs of living
For a significant portion of the Canadian population income growth has been non-existent for nearly half a decade, according to a new analysis.
The findings illustrate a deepening chasm between stagnating wages and the ever-climbing cost of living, raising concerns about the long-term economic stability of households nationwide.
The data, compiled from a Harris & Partners survey of over 1,200 Canadians, exposes a challenging reality for the workforce with 59.1% of respondents saying they have not received a pay increase since 2020.
This means many are finding it increasingly difficult to meet their basic needs with 71.9% stating their earnings have failed to keep pace with inflation and 87% believing their wages have not kept up with the overall rising cost of living.
"These figures paint a worrying picture," says Joshua Harris, CEO of Harris & Partners. He adds that even where people have had a pay rise “it has often been swallowed up by inflation, leaving them no better off than they were years ago."
The economic landscape has been defined by a relentless upward trajectory of costs for essential goods and services and household budgets have been stretched to their limits.
"This is not about wanting luxury items, it is about keeping up with the basics," Harris explains. "When you have nearly nine in ten Canadians saying their wages are not enough to match rising costs, it is clear we have a systemic issue that needs to be addressed."
The report highlights that households are not only struggling to maintain their current standard of living but are also finding it harder to build a financial cushion for the future. Emergency savings are being depleted, and the constant pressure is contributing to increased financial anxiety and stress-related mental health challenges.
"When people feel like they are working just as hard but falling further behind, it creates frustration, anxiety, and uncertainty about the future," Harris adds. "This level of financial strain is not sustainable for individuals or the economy as a whole."
Harris & Partners is advocating for proactive solutions such as more effective strategies to link wage growth with the true cost of living, coupled with broader access to financial literacy and advisory services. The firm emphasizes that Canadians are already taking responsibility by budgeting and working diligently, but without meaningful support from wages that reflect economic realities, the path to financial stability will only become more challenging.
"Canadians are doing their part. They are budgeting, working harder, and making sacrifices," Harris concludes. "But without meaningful wage growth that keeps pace with inflation, it will only get harder for people to make ends meet."
