A recent national survey suggests the majority of Canadians have not received a pay raise in the past five years, and many who have are still struggling to keep up with inflation and the rising cost of living, according to Harris & Partners.
The survey, conducted in August 2025 by Harris & Partners, a Licensed Insolvency Trustee firm, gathered responses from 1,210 Canadians aged 18 and older. It aimed to explore how financial pressures and wage trends are impacting household finances and wellbeing.
Of the 1,208 respondents who answered questions about wage changes, 59.1 per cent said they had not received a pay increase since 2020. In addition, 71.9 per cent said their salaries have not kept pace with inflation, and 87 per cent reported their wages have not kept up with the cost of living.
Joshua Harris
“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.”
According to Harris & Partners, over the past five years Canadians have seen steady increases in the cost of essentials such as groceries, rent, utilities and transportation. The firm noted that wage growth has failed to match these increases, creating a widening gap between earnings and basic living expenses.
“This is not about wanting luxury items, it is about keeping up with the basics,” said Harris. “When you have nearly nine in ten 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 lack of wage growth is also contributing to longer-term financial stress for many households. The firm said Canadians are finding it harder to save, relying more on emergency funds, and facing increased mental health challenges linked to financial strain.
“When people feel like they are working just as hard but falling further behind, it creates frustration, anxiety, and uncertainty about the future,” Harris said. “This level of financial strain is not sustainable for individuals or the economy as a whole.”
Harris & Partners is calling for stronger action to ensure wage growth reflects the real cost of living, along with better access to financial advice and support.
“Canadians are doing their part. They are budgeting, working harder, and making sacrifices,” said Harris. “But without meaningful wage growth that keeps pace with inflation, it will only get harder for people to make ends meet.”
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024 and 2025.
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