Pay increases rising for lower income brackets
For the most part, COVID-19 has been a negative force but, it turns out, there were a few positive things that it brought along too – which show up in a report on income levels.
It turns out those in lower income brackets actually did better financially and saw their disposable income increase faster than those at the upper end of the pay scale — and it increased much faster.
Statistics Canada says this has been the case since the beginning of COVID-19 but, in the third quarter of last year for example, those in the lowest income bracket enjoyed pay increases averaging 17 per cent compared to four per cent for those in the highest category.
The report attributes this to gains in employment income for the most part. Wage levels for lower income earners rose by nine to 10 per cent while those in the highest bracket saw only one per cent improvements.
This also translated into savings as those at the lower end of the scale were able to set aside more money as their incomes outpaced the growth in spending.
