Transgender and non-binary workers in Canada face significant earnings gaps and higher poverty rates compared to their cisgender counterparts, even after accounting for education and experience, according to new census data released by Statistics Canada.
Transgender women earned 20.3 per cent less than cisgender men in 2020, while cisgender women earned 17.6 per cent less, the study found. Transgender men faced a 10.1 per cent earnings gap, and non-binary people earned 5.9 per cent less than cisgender men.
Cisgender refers to people whose gender identity corresponds to their sex assigned at birth. This distinguishes them from transgender people, whose gender identity differs from their sex assigned at birth, and non-binary people, who identify as neither exclusively male nor female.
The analysis, based on 2021 Census of Population data, represents the first comprehensive examination of economic outcomes for gender diverse Canadians using census-level data.
Poverty rates highest among non-binary workers
Age-adjusted poverty rates were highest for non-binary people at 17.8 per cent, more than double the national rate of seven per cent. Transgender women faced an 11.1 per cent poverty rate, and transgender men 10.5 per cent, compared to seven per cent for both cisgender men and women.
These disparities persisted even among full-time, full-year employees and those with university degrees, according to the study.
Education paradox emerges
Non-binary people were the most likely group to hold a bachelor’s degree or higher at 38.8 per cent, compared to 25.2 per cent of cisgender men. However, they still faced significant economic disadvantages.
Among degree holders working full-time year-round, cisgender men earned an average of $99,300 annually. Transgender women with degrees earned 18.1 per cent less, while non-binary degree holders earned 13 per cent less.
Employment patterns show disparities
Gender diverse workers were less likely to work full-time throughout the year. Among those aged 25 to 64, only 52.3 per cent of non-binary people worked full-time year-round, compared to 69.1 per cent of cisgender men.
Gender diverse people also had substantially higher disability rates. Non-binary people had a disability rate of 81.9 per cent, compared to 27.1 per cent for cisgender men and women. Among those with disabilities, mental health-related disabilities were most common for gender diverse people.
The study found gender diverse workers were more likely to be employed in lower-paid occupations such as sales and service jobs, and occupations in arts, culture, recreation and sport.
Gaps persist after accounting for other factors
Even after controlling for age, education, work activity, occupation, living arrangements and other socioeconomic factors, earnings gaps remained for all groups studied.
Using this methodology, transgender women and cisgender women both faced approximately 19 per cent earnings gaps compared to cisgender men. Non-binary people faced a 12.4 per cent gap, and transgender men a 6.9 per cent gap.
Census context and methodology
The data reflects the 2020 calendar year, when the COVID-19 pandemic disrupted employment patterns. Government transfers during the pandemic helped lower poverty rates overall in 2020 compared to previous years.
The 2021 Census was the first to include a gender question alongside sex at birth, allowing Statistics Canada to identify and analyze outcomes for transgender and non-binary populations. The study used age-standardized statistics to account for the younger average age of gender diverse populations.
The analysis included people aged 18 and older living in private households in provinces and territories. The earnings analysis focused on paid employees aged 25 to 64 who worked in 2020, excluding self-employed workers and students.
Gender diverse people represented 0.33 per cent of the Canadian population aged 15 and older in the 2021 Census.
