Many developments have shaped the Canadian labour market over the last four decades. Many of these changes potentially affected the Canadian wage structure during that period, including the decline in manufacturing; the advent of computer-based technologies, automation and artificial intelligence (AI); and the substantial growth in workers’ educational attainment and women’s participation in the labour force, says Statistics Canada.
To better understand how wages in Canada (before taxes and deductions) have evolved over the last four decades, a new presentation released recently titled “Research to Insights: Wages in Canada, 1981 to 2024,” includes data from administrative sources, the Labour Force Survey (LFS) and selected household surveys conducted during the 1980s, it said.
“From 1981 to 2024, median real hourly wages grew by 20%, with most of this growth occurring after 2003. Median real hourly wages in full-time jobs—jobs that involve at least 30 work hours per week—grew by 24%. In contrast, median real hourly wages in part-time jobs increased by 6%.,” said the federal agency.
“Over the last four decades, wages of young full-time employees grew at a slower pace compared with their older counterparts. From 1981 to 1998, the median real hourly wages of men and women aged 25 to 34 employed full-time grew roughly 20 percentage points less than those of their counterparts aged 45 to 54.
“However, different patterns were observed from 1998 to 2024. During that period, men and women aged 25 to 34 saw their median wages grow by about 5 percentage points faster than for those of aged 45 to 54, partly offsetting the slower wage growth observed from 1981 to 1998.”
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From 1981 to 2024, average job tenure and educational attainment both rose at faster pace for women than for men. In addition, the representation of women in higher-paying occupations increased. As a result, women experienced faster wage growth than men in all age groups, which led to a narrowing of the gender wage gap, explained the report.
“In 1981, the median hourly wage of women aged 25 to 54 employed full-time represented 75% of the median hourly wage of their male counterparts. By 2024, this gender wage ratio stood at 90%.,” it said.
“From 1981 to 2024, the gender wage gap narrowed to a greater extent among full-time employees aged 25 to 34 than among those aged 45 to 54.
“In 2024, women aged 25 to 34 earned a median wage of 96 cents for every dollar earned by men in the same age group, up from 78 cents in 1981. For women aged 45 to 54, the median wage earned in 2024 was 83 cents for every dollar earned by their male counterparts, up from 71 cents in 1981.”
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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