Canada’s Average Income Climbs to $67466 – But Rising Housing Costs Erode Gains

This improvement is driven by wage growth in key industries such as healthcare, construction, technology, and manufacturing, which continue to offer strong job opportunities in a competitive labor market.

Ontario Surpasses the National Average

Ontario, often regarded as Canada’s economic hub, has seen even stronger growth. Workers in the province are now earning an average of $1,329.64 per week, or $69,141.28 annually, making it the fifth-highest province/territory in terms of wages.

Although Ontario’s performance places it ahead of provinces like British Columbia and Quebec, it still trails behind Alberta and the three northern territories, where wages are boosted by location premiums and higher costs of living.

Wage Rankings Across Provinces and Territories

The latest figures paint a clear picture of how wages vary across Canada:

Region	Weekly Avg (CAD)	Annual Avg (CAD)
Nunavut	$1,734.91	$90,215.32
Northwest Territories	$1,733.99	$90,167.48
Yukon	$1,484.53	$77,195.56
Alberta	$1,362.04	$70,826.08
Ontario	$1,329.64	$69,141.28
British Columbia	$1,310.45	$68,143.40
Newfoundland & Labrador	$1,279.31	$66,524.12
Saskatchewan	$1,260.36	$65,538.72
Quebec	$1,250.26	$65,013.52
New Brunswick	$1,180.48	$61,384.96
Manitoba	$1,162.42	$60,445.84
Nova Scotia	$1,157.42	$60,186.84
Prince Edward Island	$1,125.29	$58,515.08

The northern territories continue to dominate the wage charts, driven by high-demand industries, limited labor pools, and elevated living costs.

Growth Sectors Supporting Wage Increases

Several industries are fueling wage growth in Ontario and beyond. Employers are raising pay to attract skilled workers in critical fields, including:

• Information and Technology Services
• Healthcare and Social Assistance
• Construction and Skilled Trades
• Manufacturing and Logistics
• Finance and Insurance

These sectors are reporting strong hiring trends, reflecting the broader demand for talent and the pressure on employers to remain competitive.

Rising Costs Erode Wage Gains

Despite higher earnings, many Canadians are finding that their income doesn’t stretch as far as it once did. The cost of living continues to rise, particularly in Toronto and Vancouver, where housing, transportation, and utility expenses significantly reduce disposable income.

For example, the monthly cost of living in Toronto is estimated at \$3,606, broken down as follows:

Expense Type	Monthly Cost (CAD)
Rent (1 BHK)	\$2,200
Groceries	\$600
Transportation	\$156
Utilities and Internet	\$250
Miscellaneous	\$400
Total	\$3,606

This means even with Ontario’s average annual wage of nearly \$69,000, many residents struggle to balance housing, childcare, and day-to-day expenses.

Regional Affordability vs. Higher Wages

While Ontario, Alberta, and the northern territories boast the highest wages, affordability remains a major concern. On the other hand, provinces such as Manitoba, Nova Scotia, and New Brunswick offer a lower cost of living despite below-average wages.

These provinces are becoming increasingly attractive to Canadians seeking better affordability, where housing and essential services cost less, even if wages are lower.

Ontario’s Wage Growth in Context

For Ontario, the recent wage increases are a positive step, but experts warn that they do not fully offset the region’s housing affordability crisis. A single-bedroom apartment often consumes more than one-third of a worker’s monthly income, well above the affordability benchmark.

As a result, many households are forced to cut back on discretionary spending, save less for retirement, or rely on government support programs.

Broader Implications for Canada’s Economy

The rise in wages has a mixed impact on the national economy. On one hand, higher pay strengthens consumer confidence and spending power, fueling local economies. On the other, inflationary pressures and persistent housing shortages are limiting the real benefits for many households.

Policymakers and economists argue that income growth must be matched with affordability initiatives, such as housing supply expansion, childcare subsidies, and better transportation systems, to ensure Canadians experience genuine improvements in financial security.

Looking Ahead

As Canada’s labor market continues to evolve, wage trends will be influenced by:

• Growth in high-demand industries
• Regional economic strategies
• National housing and affordability policies
• Immigration and labor supply dynamics

For Ontario and other high-wage provinces, the challenge will be balancing rising salaries with affordable living conditions. Without addressing the cost-of-living gap, wage growth risks becoming a temporary fix rather than a long-term solution.

FAQs on Wage Growth in Canada 2025

Q1. What is the average wage in Canada in 2025?
The national average weekly wage is \$1,297.44, which equals an annual income of \$67,466.88 before taxes.

Q2. Which province has the highest wages?
Nunavut leads with an average annual salary of \$90,215.32, followed closely by the Northwest Territories.

Q3. How much do workers in Ontario earn on average?
Ontario’s average weekly wage is \$1,329.64, or \$69,141.28 annually, making it the fifth-highest in the country.

Q4. Why are wages higher in northern territories?
Wages are higher in Yukon, Northwest Territories, and Nunavut due to remote location premiums, limited labor supply, and higher living costs.

Q5. Are higher wages enough to improve affordability in Ontario?
Not entirely. While incomes are rising, housing costs and living expenses in cities like Toronto still outpace wage growth, limiting real financial security for many workers.