Latest news with #disposableincome
CBC
16-07-2025
- Business
- CBC
Income inequality hit record high at start of 2025, Statistics Canada says
The gap between the country's highest- and lowest-income households reached a record high in the first quarter of 2025, Statistics Canada said Wednesday. The agency said the difference in the share of disposable income between households in the top 40 per cent of the income distribution and the bottom 40 per cent grew to 49 percentage points in the first three months of the year. "It's not a surprise," said Katherine Scott, a senior researcher focused on gender equality and public policy at the Canadian Centre for Policy Alternatives. Scott said the current economic uncertainty is "contributing to a lot of economic distress," in particular for young people seeking employment. Statistics Canada said the measure has increased each year following the onset of the COVID-19 pandemic. For the first quarter of 2025, it said the increase came as the highest-income households gained from investments, while the lowest-income households saw wages decline. Scott said many individuals at the higher end of the income scale didn't see their incomes decline during the pandemic, with many staying in their jobs. "But more importantly, they were in a position to take advantage of the huge run-up of the investment markets that happened at that time and have continued to increase ever since," Scott said. Disposable income gap widens Those in the bottom 20 per cent of the income distribution saw the weakest growth in disposable income in the first quarter at 3.2 per cent compared with a year ago, as their average wages edged down 0.7 per cent. The lowest-income households also saw the largest drop in net investment income as their earnings fell 35.3 per cent, while net transfers received, including increased government support measures, rose 31.2 per cent. The average disposable income for those in the top 20 per cent of the income distribution increased at the fastest pace of any income group as they benefited from a 7.7 per cent increase compared with a year earlier. The highest-income households saw a 4.7 per cent increase in average wages and a 7.4 per cent gain in investment income. Statistics Canada said the wealth gap also increased as the top 20 per cent of the wealth distribution accounted for 64.7 per cent of Canadians' total net worth in the first quarter, averaging $3.3 million per household. The bottom 40 per cent of the wealth distribution accounted for 3.3 per cent of net worth, averaging $85,700 per household. Scott highlighted that following the 2008-09 recession, there was a "real discussion" regarding rising income inequality, which doesn't appear to be taking place currently. "This kind of information, the largest gap ever, it's a wake-up call. We can't sustain it, we have to pay attention to the structure of our economy and the distribution of that," she said. "We have to grow the pie, but we have to talk about the distribution of the pie. It matters that people are able to live a decent quality of life with dignity. I think that's a really important public policy goal, which seems to be lost in the current conversation."
CTV News
16-07-2025
- Business
- CTV News
Statistics Canada says income gap hit record high in first quarter
OTTAWA — Statistics Canada says the income gap between the country's highest and lowest income households reached a record high in the first quarter of 2025. The agency says the difference in the share of disposable income between households in the top 40 per cent of the income distribution and the bottom 40 per cent grew to 49 percentage points in the first three months of the year. Statistics Canada says the measure has increased each year following the onset of the COVID-19 pandemic. For the first quarter of 2025, it says the increase came as the highest income households gained from investments, while the lowest income households saw wages decline. Those in the bottom 20 per cent of the income distribution saw the weakest growth in disposable income in the first quarter at 3.2 per cent compared with a year ago as their average wages edged down 0.7 per cent. The average disposable income for those in the top 20 per cent of the income distribution increased at the fastest pace of any income group in the first quarter of 2025 as they benefited from a 7.7 per cent increase compared with a year earlier. --- This report by The Canadian Press was first published July 16, 2025.
Yahoo
16-07-2025
- Business
- Yahoo
Statistics Canada says income gap hit record high in first quarter
OTTAWA — Statistics Canada says the income gap between the country's highest and lowest income households reached a record high in the first quarter of 2025. The agency says the difference in the share of disposable income between households in the top 40 per cent of the income distribution and the bottom 40 per cent grew to 49 percentage points in the first three months of the year. Statistics Canada says the measure has increased each year following the onset of the COVID-19 pandemic. For the first quarter of 2025, it says the increase came as the highest income households gained from investments, while the lowest income households saw wages decline. Those in the bottom 20 per cent of the income distribution saw the weakest growth in disposable income in the first quarter at 3.2 per cent compared with a year ago as their average wages edged down 0.7 per cent. The average disposable income for those in the top 20 per cent of the income distribution increased at the fastest pace of any income group in the first quarter of 2025 as they benefited from a 7.7 per cent increase compared with a year earlier. This report by The Canadian Press was first published July 16, 2025. The Canadian Press
Yahoo
23-06-2025
- Business
- Yahoo
23 States Where $100K Doesn't Feel Like Middle Class
The higher the cost of living is in a particular state, the less a $100,000 salary feels or spends like that. See More: Try This: A new study from GOBankingRates analyzed every state to determine where $100,000 in household income doesn't feel like middle class. Key data was sourced for each state, like the household median income, average home value and monthly mortgage and the total cost of living (combining mortgage and expenditure costs). Using the 50/30/20 finance rule (50% goes to needs), GOBankingRates pulled out the states where you would have less than $50,000 left after paying for essentials, defining these as the states where $100,000 will not feel like $100,000. The states are ranked by least amount of disposable income out of a $100,000 salary. Also see the salary needed in every state to net $100,000. Household median income: $98,317 Average home value: $985,731 Average monthly mortgage cost: $5,825 Total cost of living annually: $104,671 Money left from $100K after cost of living: ($4,671) Find Out: Read Next: Household median income: $96,334 Average home value: $809,893 Average monthly mortgage cost: $4,786 Total cost of living annually: $87,595 Money left from $100K after cost of living: $12,405 Be Aware: Household median income: $101,341 Average home value: $658,566 Average monthly mortgage cost: $3,892 Total cost of living annually: $76,224 Money left from $100K after cost of living: $23,776 Household median income: $94,952 Average home value: $618,364 Average monthly mortgage cost: $3,654 Total cost of living annually: $71,188 Money left from $100K after cost of living: $28,812 Household median income: $101,050 Average home value: $566,880 Average monthly mortgage cost: $3,350 Total cost of living annually: $65,958 Money left from $100K after cost of living: $34,042 View More: Household median income: $92,470 Average home value: $564,641 Average monthly mortgage cost: $3,337 Total cost of living annually: $64,103 Money left from $100K after cost of living: $35,897 Household median income: $91,750 Average home value: $541,641 Average monthly mortgage cost: $3,201 Total cost of living annually: $62,491 Money left from $100K after cost of living: $37,509 Household median income: $80,426 Average home value: $509,299 Average monthly mortgage cost: $3,010 Total cost of living annually: $62,401 Money left from $100K after cost of living: $37,599 For You: Household median income: $95,628 Average home value: $507,234 Average monthly mortgage cost: $2,997 Total cost of living annually: $61,918 Money left from $100K after cost of living: $38,082 Household median income: $86,372 Average home value: $486,649 Average monthly mortgage cost: $2,876 Total cost of living annually: $61,244 Money left from $100K after cost of living: $38,756 Household median income: $89,336 Average home value: $385,786 Average monthly mortgage cost: $2,280 Total cost of living annually: $60,238 Money left from $100K after cost of living: $39,762 That's Interesting: Household median income: $93,760 Average home value: $440,359 Average monthly mortgage cost: $2,602 Total cost of living annually: $58,635 Money left from $100K after cost of living: $41,365 Household median income: $84,578 Average home value: $461,467 Average monthly mortgage cost: $2,727 Total cost of living annually: $58,580 Money left from $100K after cost of living: $41,420 Household median income: $75,561 Average home value: $466,050 Average monthly mortgage cost: $2,754 Total cost of living annually: $58,336 Money left from $100K after cost of living: $41,664 Discover More: Household median income: $69,922 Average home value: $460,766 Average monthly mortgage cost: $2,723 Total cost of living annually: $57,522 Money left from $100K after cost of living: $42,478 Household median income: $74,636 Average home value: $462,848 Average monthly mortgage cost: $2,735 Total cost of living annually: $57,192 Money left from $100K after cost of living: $42,808 Household median income: $101,652 Average home value: $438,225 Average monthly mortgage cost: $2,590 Total cost of living annually: $56,814 Money left from $100K after cost of living: $43,186 Trending Now: Household median income: $76,872 Average home value: $438,202 Average monthly mortgage cost: $2,589 Total cost of living annually: $55,845 Money left from $100K after cost of living: $44,155 Household median income: $71,773 Average home value: $397,214 Average monthly mortgage cost: $2,347 Total cost of living annually: $54,714 Money left from $100K after cost of living: $45,286 Household median income: $78,024 Average home value: $392,398 Average monthly mortgage cost: $2,319 Total cost of living annually: $53,903 Money left from $100K after cost of living: $46,097 Read Next: Household median income: $71,711 Average home value: $407,588 Average monthly mortgage cost: $2,409 Total cost of living annually: $53,714 Money left from $100K after cost of living: $46,286 Household median income: $90,974 Average home value: $406,016 Average monthly mortgage cost: $2,399 Total cost of living annually: $53,284 Money left from $100K after cost of living: $46,716 Household median income: $82,855 Average home value: $389,709 Average monthly mortgage cost: $2,303 Total cost of living annually: $52,589 Money left from $100K after cost of living: $47,411 Methodology: Data for this study was sourced from the U.S. Census American Community Survey, Missouri Economic and Research Information Center, Bureau of Labor Statistics Consumer Expenditure Survey, Zillow Home Value Index and Federal Reserve Economic Data. All data was collected on and is up to date as of May 30, 2025. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard 7 Luxury SUVs That Will Become Affordable in 2025 I'm a Retired Boomer: 6 Bills I Canceled This Year That Were a Waste of Money This article originally appeared on 23 States Where $100K Doesn't Feel Like Middle Class Sign in to access your portfolio
News.com.au
10-05-2025
- Business
- News.com.au
Classic Aussie rituals we can no longer afford
ANALYSIS Another long weekend, another trip to the pub, another long soul-searching think about whether a parmigana is even worth it these days. The price of a humble counter meal is at a level that is making Australians uncomfortable. We know how much money we make, how much our bills cost, and how much is left over. And – tell me if I'm wrong here – that delicious slab of chicken, ham and cheese is going to eat up much more of the leftover money than feels right. The arithmetic of it all Wages are rising. A little bit. Incomes are rising too, and actually more than wages, because the number of hours worked is up quite a lot. But here's the problem: prices are up too. Family's drastic plan during cost of living crisis-Mum reveals how she saved $150,000 with four kids during the cost of living crisis This next chart shows how it shakes out. When you look at disposable income vs. inflation, inflation has won the last couple of years. Disposable income is important to think about because a huge amount of our income is disappearing into tax and mortgage repayments. It leaves a lot less for disposing (i.e. spending!) on other things. When you get to that list of 'other things', boy, is that unpleasant. You want to go and buy a burger, but first you need to pay some of the boring things. Like your car insurance. My insurer sent me a quote for next year's insurance a little while ago and it was up over 15 per cent on the year before, as the pic below shows – even though they're insuring a lower value for my car, (a basic family wagon). I don't feel very lucky about being with my insurer these days actually. I'm going to shop around a bit before I pay that bill, for sure. The same is happening with mortgage repayments and rents – they have risen crazy amounts over the last three years and they are killing our disposable income. Prices in lots of non-discretionary categories are rising, which leaves much less money for the discretionary stuff. And the discretionary stuff is the fun stuff. The unbearably high price of having a moderately nice time My local coffee shop is good, a bit fancy I suppose, but even still I was blown away to pay over $6 for a large flat white recently. There was a time, not that long ago when I felt a bit awkward about just buying coffee at a coffee shop, especially if I sat in there for a while with my computer. I would usually order some toast or eggs to sort of pay a bit of rent. But that was when a coffee cost a few coins. These days I'm often happy to just have a hot drink. To be clear, I'm not blaming the coffee shop owner. I believe the rising price of a cup of coffee is a sign they are struggling, not a sign they are greedy. The cost of coffee beans has gone crazy – as the next chart shows – and the number of customers has fallen. If you need to make $100 margin on coffees a day to cover rent and you're selling 100 cups of coffee, the mark-up only needs to be $1. But if demand falls to 50 cups of coffee a day then you have to make the margin $2 per cup, which puts off more customers. It's a brutal equation. The struggle to enjoying a bit of discretionary spending is not evenly distributed. Older people who have paid off their home can still go for a pub dinner without blinking, but younger people are in struggle town. If I had a hospitality business aimed at young hipsters, I'd be panicking. The Commonwealth Bank collates excellent data on the spending habits of people depending on their home ownership status, and they find renters are dragging along the bottom, when they used to be the most extravagant. A world where a 20-something can't easily go out to the pub is a world that's got a lot worse, and that will come with consequences – not least of which could be the next election. Both major parties could be in for a shock.
