The gap in disposable income between the highest and lowest-income households hit a record of 49 percentage points in early 2025, indicating growing income inequality. The continued economic uncertainty, particularly impacting young job seekers, has contributed to this trend. Following the COVID-19 pandemic, higher-income households gained from investments while lower-income households experienced wage declines. The bottom 20 percent saw only a 3.2 percent growth in disposable income, contrasting sharply with the 7.7 percent increase in the top 20 percent's disposable income, illustrating the widening income disparity.
The gap between the country's highest- and lowest-income households reached a record high in the first quarter of 2025, with a 49-percentage-point difference.
The measure of income disparity increased each year following the onset of the COVID-19 pandemic, with investments benefiting the highest-income households.
In the first quarter of 2025, the lowest-income households saw their average wages decline by 0.7%, resulting in the largest drop in net investment income.
The bottom 20% of the income distribution experienced a mere 3.2% growth in disposable income, significantly lagging behind the top income groups.
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