Gender wage gap narrows in past 40 years

Median real hourly wages grew 20%, says report

Gender wage gap narrows in past 40 years

The gender wage gap in Canada has narrowed considerably over the past four decades, but full equality remains out of reach, according to new data from Statistics Canada (StatCan).

In its latest Research to Insights report, released June 9, 2025, Statistics Canada found that women aged 25 to 54 working full-time earned 90 cents for every dollar earned by men in 2024, up from 75 cents in 1981. The most significant progress was seen among younger workers: women aged 25 to 34 now earn 96 cents for every dollar earned by their male peers, compared to 78 cents four decades ago.

This progress reflects how women have outpaced men in wage growth across all age groups. Between 1981 and 2024, women’s median real hourly wages in full-time roles grew 21 to 25 percentage points more than those of men.

This is largely due to higher educational attainment, longer job tenure, and increased representation in higher-paying occupations, says StatCan.

Women earned an average of $0.71 for every $1.00 earned by white men in 2016, according to a previous StatCan report.

The public sector is further along compared to the private sector when it comes to closing the gender wage gap, according to a separate study from the Canadian Centre for Policy Alternatives (CCPA).

Wage growth among men

StatCan’s report also highlights growing income inequality among men aged 25 to 54. From 1981 to 2022, real annual wages at the 90th percentile increased by 29%, remained flat at the median, and declined by 6% at the 10th percentile. Wages for men at the 99th percentile increased by 76% over the same period. Multiple factors—including technological change, global trade, declining unionisation, and shifts in labour supply—contributed to this widening gap, according to the report.

For women, income distribution trends were mixed. Women at the 10th percentile saw their annual wages rise by 82% between 1981 and 2022, outpacing the 52% growth at the median. At the top end, women’s wages doubled. The COVID-19 pandemic temporarily disrupted earnings for many women in lower-paid sectors such as accommodation and food services, largely due to reductions in work hours.

Overall, median real hourly wages across Canada grew 20% from 1981 to 2022, with most of the growth occurring after 2003.

Despite a modest rebound in wage growth in recent years, Canada’s lowest-income households continue to fall behind, as rising living costs outpace earnings and compound affordability pressures, according to a previous CCPA report.