Incomes of Canadian Middle-class Lagging

Jul 09, 2013

Incomes of Canadian middle-class families have lagged behind some other groups due to modest wage growth, says Finance Minister Jim Flaherty.
The report showed the income of Canadian middle-class families did not grow as fast as other income groups over the last 35 years, with male workers in middle-class families having seen “little wage increases” since the mid-1990s.
Since 1976, the average after-tax income of all Canadian families grew 18 per cent in real terms (adjusting for inflation) to $61,000 in 2010 (most recent data available), say the documents.
When changes in the composition of families are taken into account — including fewer adults per household as family sizes decrease — the real after-tax income of middle-class families increased 30 per cent from 1976 to 2010, which is on par with other income groups. However, that’s still lower than the 38 per cent growth in the after-tax, per-adult income of the top one-fifth of earners.