Middle class Canadians are increasingly indebted, have seen their wages stagnate and are unlikely to move into higher income brackets, a report by Employment and Social Development Canada (ESDC) has found.
The report was completed in October 2013 and was obtained by the Canadian Press through an access to information request. It covers the 15-year period between 1993 and 2007.
During that time, middle-income Canadians saw their earnings grow 1.7%, compared to 3.3% for high-income people. Very high-income earners saw their earnings increase 6.2%.
Middle class wages stagnated during the time period studied: in 1993, middle income earners received an average $18.63 an hour. In 2007, that had increased to $19.70. High-income earners saw their average wage rise from $24.88 to $28.16, while very high income Canadians who earned an average of $24.08 in 1993 earned $41.97 in 2007.
The report notes that the middle class has taken on increasing amounts of debt. For instance, between 1999 and 2005, the debt-to-income ratio increased 20%, from 98.1% to 117.9%. Today, that ratio stands at 163%.
The report also found that couples with young children represent a decreasing proportion of middle-income families, and that middle class people are more likely to stay in their income level than move either up or down.
ESDC is currently updating its analysis to include data from 2008 to 2011, which would take in the impact of the global recession on Canada's middle class.
