ANALYSIS: Gap in Living Standards Between Canada and the U.S. Has More Than Doubled From 1999-2024; U.S. Now $23,757 Higher Than Canada

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Squandering the Canadian Century Part 1: Comparing Economic Performance in Canada and the United States

By Grady Munro, Jake Fuss and Joel Emes

At the turn of the 21st century, some hoped this would be the “Canadian Century” wherein Canada’s economic growth could begin to rival that of the US. Now, a quarter of the way into the century, this study compares economic performance in the two countries across a variety of measures to see whether this hope is beginning to materialize or if policymakers have squandered this opportunity.
In 1999, inflation-adjusted gross domestic product (GDP) per person in the US was CA$10,766 higher than in Canada. By 2024, that gap had more than doubled to CA$23,757.
Similarly, in 2010, inflation-adjusted median employment income in the US was CA$6,126 higher than in Canada. By 2024, that gap had increased to CA$8,663.
Since 1999, Canada experienced higher levels of government-sector employment growth than private-sector employment growth, resulting in a shrinking private sector and growing government sector (both as a share of total employment). The US experienced the opposite.
Canada has also seen a decline in business investment relative to the US. From 2007 to 2024, investment in Canada went from nearly 90 cents (per worker) for every dollar invested in the United States to 54 cents (per worker).
From 1999 to 2025, labour productivity increased 26.7% in Canada, compared to 67.9% in the United States.
These measures show that policymakers have thus far squandered the Canadian Century. In particular, Canada began to truly squander this opportunity post-2014. Prior to 2014, Canada largely kept pace with, or in some cases exceeded the US, across multiple measures.