Many households say their paychecks no longer stretch as far as they used to, survey finds
A nationwide survey has revealed that nearly six in 10 Canadians have not received a pay increase since 2020, highlighting a growing gap between wages and the rising cost of living across the country.
The study, conducted by Licensed Insolvency Trustee firm Harris & Partners, surveyed more than 1,200 Canadians about their wage growth over the past five years. The findings paint a concerning picture of financial strain affecting households nationwide.
Of the 1,208 respondents, 59.1% reported receiving no pay raise since 2020. Even more troubling, 71.9% said their salary has not kept pace with inflation, while 87% indicated their wages have failed to match the rising cost of living.
“These figures paint a worrying picture,” said Joshua Harris, CEO of Harris & Partners. “Even in cases 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.”
Wages and costs misaligned
The survey underscores a widening gap between earnings and essential expenses. Over the past five years, Canadians have faced persistent increases in the cost of groceries, rent, utilities, and transportation, while wage growth has significantly lagged behind.
“This is not about wanting luxury items, it is about keeping up with the basics,” Harris explained. “When you have nearly nine in 10 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 financial pressures have created ripple effects across Canadian households. Many families are finding it increasingly difficult to save money, with growing numbers dipping into emergency funds to cover basic expenses. The persistent financial strain is also contributing to 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 noted. “This level of financial strain is not sustainable for individuals or the economy as a whole.”
The survey results come at a time when many Canadians are already stretching household budgets to accommodate higher costs for necessities. The disconnect between wage growth and inflation has forced many to reduce spending on non-essential items and delay major purchases.
Call for stronger measures
Harris & Partners is advocating for stronger measures to ensure wages better reflect the true cost of living, alongside improved access to financial advice and resources for struggling households.
“Canadians are doing their part. They are budgeting, working harder, and making sacrifices,” Harris concluded. “But without meaningful wage growth that keeps pace with inflation, it will only get harder for people to make ends meet.”
The survey was conducted in August 2025 and included responses from 1,210 Canadians aged 18 and older, examining how financial pressures and wage trends are affecting Canadians’ wellbeing and daily financial decisions.
