Canada has become a global leader in early-stage entrepreneurship, ranking 4th in the 2025 Global Entrepreneurship Monitor—up from 13th in the 2024 Scorecard. However, the country continues to lag in innovation, business growth, and productivity, highlighting challenges in scaling and retaining successful start-ups.
Structural policy changes are needed to boost R&D, foster competition, and help Canadian firms grow. At the same time, rising household debt, income inequality, and low-wage work threaten financial stability for many Canadians, calling for targeted interventions.
Canada’s export market also remains heavily dependent on the U.S., making trade diversification critical to reducing vulnerability to economic and geopolitical shifts.
Growth and development of the Indigenous economy and business sector is essential to fostering reconciliation with Indigenous peoples and is a key driver of the economic future of Canada, as the Indigenous population continues to grow at a faster rate compared to Canada’s population overall.
Canada’s GDP attributable to Indigenous peoples was $60.2 billion in 2022.
Grow the Indigenous economy to at least $100 billion annually.
GDP attributable to Indigenous peoples increased from $49 billion in 2020 to $60.2 billion in 2022, reflecting progress toward greater economic inclusion. Growth has been supported by a rising number of Indigenous-owned businesses, increased investments in infrastructure, and Indigenous participation in major natural resource and real estate projects. However, significant barriers remain, including access to capital, infrastructure gaps, and systemic obstacles to full economic participation.
Quality of work is an important indicator of quality of life, a core building block for creating shared prosperity. Facets to quality of work include regular work hours, opportunities to move from temporary to permanent employment and access to benefits. A key element associated with poor job quality is low pay.
Canada ranked 9th out of 12 OECD countries with an incidence of low-wage work of 18% in 2024.
Reduce the share of Canadian workers in low-wage employment to closer to the OECD average of 12.7% (2023).
The proportion of Canadians in low-wage work declined slightly in 2024 but remains significantly above the OECD average. Structural issues, such as the growth of precarious work, rising living costs, and stagnating real wages, continue to affect workers in retail, hospitality, care work, and other service sectors. Groups disproportionately represented in low-wage employment include women, racialized workers, newcomers, and persons with disabilities.
A highly concentrated export market exposes Canada to economic risk if its primary trading partner experiences a downturn or imposes trade restrictions. Diversifying export destinations helps increase economic resilience and global competitiveness.
Canada’s export market concentration ratio was 0.58 in 2024.
Reduce the concentration ratio to below 0.50 by 2030 to reflect a more diversified and resilient export portfolio. The concentration ratio is measured on a scale from 0 to 1, where higher values indicate greater reliance on a small number of trading partners. A score above 0.5 is considered high and signals increased economic vulnerability in the event of trade disruption or demand shifts.
Canada’s export market remains heavily concentrated, with only a marginal improvement from 0.59 in 2023. The United States continues to dominate Canada’s trade profile. While diversification has not been a sustained policy priority over the past decade, recent global trade disruptions have underscored the importance of expanding market access. Without broader and more resilient trade partnerships, Canada remains vulnerable to external shocks and policy volatility beyond its control.
Broad employment is needed for Canada’s businesses to thrive, for household incomes to rise, for the effects of population aging to be mitigated and for tax revenues needed to support essential services for a growing population.
Canada ranked 15th out of 39 OECD countries in 2024 on its employment rate. Canada’s employment rate was 74.7% in 2024.
Achieve a position among the top 10 OECD countries for employment rate, aiming for a rate above 76.8 percent.
Canada’s employment rate decreased slightly in 2024, failing to reach a position among the top 10 OECD countries. While employment growth has kept pace with population growth, challenges remain in ensuring equitable labour market participation. Employment rates are significantly lower among persons with disabilities, Indigenous workers, recent immigrants, and lone parents. These disparities limit Canada’s ability to fully leverage its labour force at a time when economic growth increasingly depends on broad participation.
A growing Canada must fully support and harness the talents and energy of its young people to build shared prosperity. Youth who are not in employment, education or training (NEET) are at risk of being excluded from full participation in Canada’s society and economy, and of experiencing negative long-term economic and social outcomes.
Canada ranked 23rd out of 34 OECD countries on youth NEET rate in 2023. Canada’s youth NEET rate was 11.91% for 20- to 24-year-olds in 2023.
Reach a position among the top 10 OECD countries with the lowest youth NEET rates, aiming for a rate below 11 percent.
Canada’s NEET rate has fluctuated since 2021, reflecting shifts in youth participation in education and employment over the last 5 years. The 2023 rate of 11.91 percent suggests that national efforts to reconnect young people to post-secondary pathways and job opportunities are having an impact. However, progress remains uneven across regions and demographic groups. Indigenous youth, racialized youth, and newcomers continue to face higher NEET rates, indicating a need for more targeted and inclusive policy responses. Without continued investment in youth employment programs, skills development, and wraparound supports, there is a risk of plateauing or reversal in the coming years.
Post-secondary education is often associated with the highest quality and most resilient jobs. Countries with high post-secondary attainment rates are best positioned to attract investment and highly skilled immigrants, and to drive innovation and economic growth.
Canada ranked 2nd out of 38 OECD countries
67% of Canadians have post-secondary education (2022)
Maintain a position among the top 5 OECD countries for post-secondary education attainment.
Post secondary attainment levels for Canadians between the ages of 25 and 34 remained high in 2023, and Canada maintained its position as the 2nd highest OCED country for post-secondary attainment behind South Korea.
Reducing inequality as Canada grows is necessary to building shared prosperity. Income inequality poses a social, economic and political risk to OECD countries, including Canada, and is associated with decreased access to opportunity and poor health and social outcomes.
In 2023, Canada’s Gini coefficient was 0.31, ranking 5th out of 8 OECD countries. The full set of OECD country data for 2023 is not yet available for comparison purposes.
Reach a position among the top 10 most equal OECD countries.
Canada’s Gini coefficient increased to 0.31 in 2023, reversing earlier gains made during the pandemic period when income supports temporarily reduced inequality. The most recent data indicates rising disparities in disposable income, particularly as inflation and interest rates disproportionately impact low-income households. Pandemic-era transfers that reduced inequality have since expired, and current market income inequality remains structurally high. Without sustained and targeted action, inequality may continue to worsen.
Addressing high levels of household debt can improve economic growth and reduce barriers to Canadians’ choices on family size. Household debt reflects the economic vulnerability of households and their ability to weather an economic shock. It also represents a risk to the economy.
Canadian household debt was 185.2% of net household disposable income in 2023.
Reduce household debt as a share of disposable income to levels closer to the OECD average of approximately 125 percent, supporting greater financial resilience and long-term economic stability.
Canada’s household debt levels remained unchanged at 185.2 percent in 2023, maintaining one of the highest ratios among OECD countries. While mortgage debt accounts for most of this total, rising interest rates, high housing costs, and increased reliance on credit for everyday expenses have deepened household financial stress. The persistence of high debt levels puts both families and the broader economy at risk, particularly in periods of economic volatility or interest rate adjustments. Without meaningful reductions, household debt will continue to pose a drag on long-term economic security.
GDP per capita reflects total economic output per person and is an important measure of Canada’s overall prosperity, living standards, and economic well-being, though not its income distribution.
Canada ranked 14th out of 38 OECD countries in 2023.
Canada had a GDP per capita of $64,463 USD in 2023.
Top 10 OECD countries on GDP per capita.
Threshold: 10th in the OECD was GDP per capita of $70,487 USD in 2023
Canada’s GDP per capita increased slightly in 2023 but remains well below the top-performing OECD countries. The country continues to underperform in productivity, business investment, and innovation, all of which are necessary drivers of per capita growth. With strong population increases outpacing gains in output, Canada’s economic growth is not translating into improved individual prosperity. Without a shift toward productivity-led growth, GDP per capita is expected to stagnate or decline in relative terms.
As Canada’s population ages, enhancing productivity is key to maintaining economic growth. Productivity is an important driver of attractiveness for investment and global competitiveness.
In 2024, Canada ranked 12th out of 17 OECD countries for productivity, with $74.91 USD in GDP generated per hour of Canadian labour.
Achieve a top 10 ranking out of the OECD countries on productivity.
Threshold: 10th in the OECD was GDP per hour worked of $77.08 USD in 2024.
Canada remains a laggard in productivity relative to other OECD countries. While there has been some improvement in this measure over time, Canada has not yet reached a spot in the top 10 OECD countries since the Scorecard started tracking this measure in 2021.
A growing population, with increased international talent and support for local entrepreneurs, can enhance business growth. High-growth firms make up a small proportion of firms in Canada but a more significant proportion of new jobs and GDP growth.
17,930 high-growth firms in Canada in 2022.
Meet a federal government target to double the number of high-growth firms in Canada between 2015 and 2025. The target in 2025 is 28,000.
While Canada’s recent progress marks a notable shift in the right direction, progress still needs to be made to attain the 28,000 goal by 2025. Barriers to scaling remain widespread—particularly for early-stage and mid-sized firms operating in competitive markets. Challenges related to rising input costs, access to capital, and limited growth-stage infrastructure continue to constrain firm expansion. Sustained progress will require a deliberate focus on enabling more firms to scale successfully and contribute meaningfully to national growth.
Innovation is directly related to long-term economic growth as a key way to bolster productivity. Canada’s ability to innovate drives its competitiveness, standard of living and preparedness for the future.
Canada ranked 14th out of 133 countries.
Achieve a top 10 global ranking in the Global Innovation Index.
Canada improved slightly in the 2024 Global Innovation Index, rising from 15th to 14th out of 133 countries. This movement reflects modest gains but does not signal a major shift in Canada’s overall innovation performance. Canada continues to rank highly on innovation inputs such as institutions, human capital, and infrastructure. However, it underperforms on innovation outputs, particularly in areas like knowledge creation, knowledge diffusion, and intellectual property generation. The gap between input strength and output delivery remains one of the most persistent challenges for Canada’s innovation ecosystem.
Business spending on research and development is critical to creating an attractive environment for international talent. It is an indicator of the private sector’s support for innovation and whether firms are investing in developing new ideas, products, processes or services.
In 2024, business R&D spending in Canada was 1.07% of GDP based on provisional OECD data. This is well below the OECD average of approximately 1.99% (2023). Canada has consistently ranked in the bottom third of OECD countries on business R&D intensity and has not closed the gap over the past five years. While public and higher education R&D have remained strong, the private sector continues to underinvest relative to peer countries.
Meet a federal government target to keep pace with the OECD average on business spending on research and development.
Canada’s business R&D intensity remains flat and significantly below OECD benchmarks. While there have been marginal increases in recent years, these gains are not keeping pace with other advanced economies. Without stronger support for commercialization, innovation, and scale-up financing, Canada is unlikely to improve its position.
Entrepreneurial activity is an important building block for the economic growth and job creation that is needed for Canada’s future prosperity.
Canada ranked 4th out of 51 in the 2023/2024 Global Entrepreneurship Monitor’s assessment of total early-stage entrepreneurial activity.
Maintain a position among the top 10 countries globally in the Global Entrepreneurship Monitor’s assessment of total early-stage entrepreneurial activity.
Canada’s ranking on total early-stage entrepreneurial activity (TEA) rose significantly in 2023, moving from 13th out of 47 countries in 2022/23 to 4th out of 51 in the most recent Global Entrepreneurship Monitor. This represents a strong improvement in Canada’s global position and signals a positive shift in business creation conditions after several years of stagnation. Higher rates of early-stage entrepreneurship suggest increasing confidence in Canada’s startup environment, despite broader macroeconomic pressures.
