But wage gaps persist for women, racialized groups in Canada
Average hourly wages in Canada have seen a significant increase over the past years, according to a report from Statistics Canada (StatCan).
The average hourly wage for employees in Canada rose to $35.20 in 2024, marking a five-per-cent increase from pre-pandemic levels in 2019 and an 18.4-per-cent rise since 2006, when comparable data first became available.
During the first year of the COVID-19 pandemic in 2020, average hourly wages grew markedly, rising $1.79 (+5.3 per cent) to $35.30 (in 2024 constant dollars). This was driven by large employment declines in lower-paid occupations, which resulted in a shift in the composition of employment, said StatCan.
Notably, the number of employees in sales and service occupations—which is the broad occupational category with the lowest average wage—declined by 604,000 (-14.3 per cent) from 2019 to 2020.
“As public health restrictions eased in 2021 and 2022, the proportion of employees in lower-paid jobs recovered. In 2022, inflation also reached a 40-year high of 6.8 per cent on an annual average basis, with notable increases recorded in the price of energy (+22.5 per cent), transportation (+10.6 per cent) and food (+8.9 per cent),” according to the StatCan report.
“Together, the two factors contributed to pulling down the inflation-adjusted average wage by 3.7 per cent (-$1.29 to $34.01) from 2020 to 2022. The inflation-adjusted average hourly wage regained ground from 2022 to 2024, rising to $35.20 (+3.4 per cent) alongside slower inflation, and year-over-year employment increases in higher-paid occupations, such as management (+253,000, +20.6 per cent) and education, law and social, community and government services (+138,000, +6.6 per cent).”
Recently, the federal government announced sweeping pay raises for all members of the Canadian Armed Forces (CAF), marking the largest increase in a generation, according to the Office of the Prime Minister.
Wage disparities by gender, race
Despite the rise in pay, the gender wage gap remains a concern, according to StatCan’s report.
In 2024, women earned on average 12.6 per cent less than men, down from a 16.5 per cent gap in 2006. The gap is smallest among younger workers aged 15 to 24 (5.9 per cent) and largest among those aged 55 and older (16.6 per cent). Among core-aged employees (25 to 54), women earned 12.2 per cent less than men.
The report also highlights ongoing wage gaps for Indigenous and racialized employees. In 2024, core-aged First Nations, Métis, and Inuit employees earned less than their non-Indigenous counterparts, with wage gaps ranging from 5.6 per cent to 11.6 per cent.
Filipino and Black employees experienced the largest wage gaps among racialized groups, earning 25.9 per cent and 22.2 per cent less, respectively, than non-racialized, non-Indigenous employees. These disparities persist even among those with university degrees.
Sectoral differences are also significant. Public sector employees earned an average of $40.83 per hour in 2024, compared to $33.35 in the private sector. Statistics Canada attributes this difference to higher educational attainment and unionization rates in the public sector, as well as the concentration of public sector jobs in higher-paying occupational groups. Over half of public sector employees hold at least a bachelor’s degree, compared to less than one-third in the private sector.
Education levels and wages in Canada
Education continues to play a major role in wage outcomes. Employees aged 25 and older with a bachelor’s degree or higher earned an average of $44.67 per hour in 2024, which is 55 per cent higher than those with a high school diploma or less. However, wage gaps persist even within education levels, with women earning less than men at every level of educational attainment.
Employees with a bachelor’s degree or higher earned more on average. In 2024, employees aged 25 and older with a bachelor’s degree or a higher level of education earned $44.67 per hour on average, a figure 55.0 per cent higher than the average wage of those with a high school diploma or less ($28.82), according to StatCan.
Employees with postsecondary education below a bachelor’s had an average hourly wage of $34.38 in 2024.
Within each level of educational attainment, women aged 25 and older earned less than their male counterparts on average. The gender pay gap was less pronounced among employees with at least a bachelor’s degree, with women earning $0.86 for every dollar earned by men—a gap of 13.9 per cent ($41.55 and $48.26, respectively).
Canadian families are spending a larger portion of their income on taxes than on basic necessities such as food, shelter, and clothing, according to a previous report from the Fraser Institute.
