Canadian workers gained 20% more purchasing power from 1981 to 2024 after accounting for inflation, with full-time employees experiencing significantly stronger growth than their part-time counterparts, new government data shows.
Statistics Canada released comprehensive wage analysis this week revealing that median hourly wages in full-time positions grew by 24% above inflation over the 43-year period, while part-time workers saw real wage increases of just 6%. The data shows most wage growth occurred after 2003.
The findings highlight a stark divide in the Canadian labour market, where full-time workers experienced purchasing power growth four times faster than part-time employees during the same period. All wage figures are inflation-adjusted.
Gender wage gap narrows but remains significant
Women made substantial progress in closing the gender wage gap, particularly among younger workers. In 2024, women aged 25 to 34 earned 96 cents for every dollar earned by men in the same age group, up from 78 cents in 1981.
However, the gap remains wider among older workers. Women aged 45 to 54 earned 83 cents for every dollar earned by their male counterparts in 2024, compared to 71 cents in 1981.
Overall, women aged 25 to 54 employed full-time saw their median hourly wage rise from 75% of men’s wages in 1981 to 90% in 2024, according to Statistics Canada.
The agency attributed women’s faster wage growth to increased job tenure, higher educational attainment, and greater representation in higher-paying occupations.
Young workers faced slower wage growth initially
Workers aged 25 to 34 experienced different wage growth patterns across two distinct periods. From 1981 to 1998, young full-time employees saw their median real hourly wages grow roughly 20 percentage points less than workers aged 45 to 54.
This trend reversed from 1998 to 2024, when younger workers’ wages grew about 5 percentage points faster than their older counterparts, partially offsetting the earlier slower growth.
AI impact on wages remains unclear
Despite concerns about artificial intelligence affecting job markets, Statistics Canada found that wages in positions highly exposed to AI grew at similar rates from 2022 to 2024, regardless of whether the jobs could benefit from or be replaced by AI technology.
Full-time jobs with high AI exposure saw wage growth ranging from 3% to 4% during this period, showing no significant difference based on AI’s potential impact.
Manufacturing and resource sectors face scrutiny
The wage data becomes particularly relevant as Canada faces ongoing discussions about tariffs affecting the manufacturing and oil and gas extraction industries. Statistics Canada noted the information helps quantify how revenue changes in these sectors may affect worker pay rates across different regions.
The comprehensive analysis draws from administrative sources, the Labour Force Survey, and household surveys from the 1980s. All wage figures are adjusted for inflation using the Consumer Price Index.
The data provides insight into how major labour market changes over four decades—including manufacturing decline, technological advancement, and increased educational attainment—have shaped Canadian wage structures.
