The median employment earnings for workers in each Canadian province fall short of those in every U.S. state, according to a newly released study.
A comparison of Canada’s 10 provinces to 50 U.S. states by the Fraser Institute found that Canadians are consistently earning less than their American peers. The study, which compared wages, salaries, and self-employment income in both countries, found Canadian provinces ranked in the bottom 10 positions for earnings per person as of 2022.
“Canadian workers earn less compared to American workers, regardless of the province or state,” Fraser Institute senior policy Alex Whalen said in an Oct. 3 release.
Among the provinces and states, median employment earnings in 2022 were lowest in Atlantic Canada.
Prince Edward Island had the lowest earnings at $28,784. Rounding out the bottom five were New Brunswick, at $32,175, Nova Scotia at $32,178, Newfoundland and Labrador at $32,713, and Manitoba at $33,221.
The sixth-lowest median employment earnings were in Saskatchewan at $34,932, closely followed by Quebec at $36,430, Ontario at $36,749, British Columbia at $37,801, and Alberta at $38,969.
While Alberta remains the highest-earning Canadian province, it was surpassed by all U.S. states in 2022. This figure contrasts to that of 2010, when only 12 states reported earnings higher than the prairie province.
Even lower-income states such as New Mexico and Mississippi ranked higher in 2022 at $41,775 and $42,430 respectively, the study said. Another lower-income state, Louisiana, had an average of $43,318.
“Canadians should want to know why workers in states such as Mississippi and Louisiana make more money than workers here at home,” Whalen said.
The earnings discrepancy is not a new problem in Canada.
Seven provinces also ranked near the bottom of all jurisdictions for earnings growth between 2010 and 2022, the study found.
“Both the relatively low rankings of Canadian provinces as well as the relative lack of growth in Canada should be a cause for concern,” the authors wrote.
“In light of the close connection between incomes and living standards, policymakers in Ottawa and every province should make economic growth a top priority.”
Saskatchewan ranked 59th of the 60 provinces and states with earnings growth of only $961. Manitoba was 58th with $1,193 growth, Nova Scotia was 57th at $3,089 and Ontario was 56th at $3,278. New Brunswick came in 52nd with $4,399 and Newfoundland and Labrador ranked 47th with an earnings growth of $4,850.
Only British Columbia was in the top half of growth in earnings between 2010 and 2022 with a $7,732 rise in earnings per person, yet it still ranked 19th overall for the value of the increase.
