Social cohesion — Canada · Synthesis

Moderate inequalities for North America. The Gini index of disposable income stands at around 0.30 (OECD), considerably below the United States (≈ 0.39–0.41) and close to European countries — a moderate level for a North American country, thanks to stronger redistribution than in the United States.

Sharply reduced child poverty. The Canada Child Benefit (2016 reform), a targeted and generous benefit, contributed to a sharp fall in child poverty — a frequently cited case of the effectiveness of a direct transfer, even though the cost-of-living crisis has partially eroded these gains.

A persistent Indigenous fracture. Indigenous peoples (First Nations, Inuit, Métis) experience persistent and deep gaps in income, housing, health, education and justice (see the Justice category) — the deepest fracture in Canadian social cohesion, at the heart of the reconciliation process.

Housing, a growing inequality factor. The housing affordability crisis (see the Housing category) widens the gaps between owners (often older) and renters/young people, and undermines the sense of middle-class advancement.

Diversity and integration. A highly diverse society due to immigration (see the Immigration category), Canada shows broadly successful integration, but with income gaps for certain groups of recent arrivals and minorities.

Indigenous reconciliation. Reducing the gaps affecting Indigenous peoples (income, housing, health, justice) is a major long-term challenge, central to the reconciliation agenda.

Housing and the middle class. Restoring housing affordability is decisive for cohesion and the sense of social mobility, especially for young people (see the Housing category).

Maintaining the gains on child poverty. Preserving the gains of the Canada Child Benefit in the face of the cost of living is a challenge.

Integration of new arrivals. With record immigration, the economic and social integration of arrivals is a cohesion challenge (see the Immigration category).

The open questions. Three challenges will shape the period: (1) reducing Indigenous gaps; (2) restoring housing affordability; (3) preserving the gains on child poverty.

Placed in its environment, Canada shows moderate inequalities for North America, with effective redistribution for children, but a specific Indigenous fracture.

Three takeaways. (1) Inequalities: moderate. With a Gini of ≈ 0.30, Canada is close to Germany and the EU average, below the United Kingdom (≈ 0.35) and far below the United States (≈ 0.39–0.41).

(2) More effective redistribution than in the United States. Unlike its neighbour, Canada significantly reduces market inequalities and child poverty through transfers.

(3) An Indigenous fracture. The situation of Indigenous peoples is a dimension of inequality specific to Canada (and Australia), with no direct equivalent in Europe.