Study Shows Wide Wage Gap for Trans and Non-Binary Workers

Trans and non-binary people in Canada experience higher rates of poverty compared with their cisgender peers, according to a recent Statistics Canada report.

Researchers used 2021 census data to compare the differences in poverty rates and earnings between cisgender and gender-diverse Canadians.

The findings suggest a wage gap between non-binary and transgender workers who hold a bachelor’s degree or higher, when compared with their cisgender male co-workers with the same level of education.*

On average, transgender women earned 18 per cent less annually than cisgender men. The earnings gap was 13 per cent for non-binary people and 9.2 per cent for transgender men.

The research, published Oct. 16, marks the first time Statistics Canada has examined poverty and earnings among gender-diverse populations.

Darlene Bown, diversity vice president of the Hospital Employees’ Union committee for 2SLGBTQIA+ members, said the new study is a start toward recognizing gender-diverse people in Canadian workplaces.

“It's the first time we've been included as people,” she said. “Before, I would not have been included, not until now.”

A body of research already shows that trans and non-binary Canadians face elevated rates of violence and unique health outcomes compared with peers, often in part due to bias, racism, stigma, homophobia and transphobia.

But to date, there has been limited research into how gender-diverse people fare economically in Canada.

Bown said she wasn’t surprised by the new study’s findings.

“It echoes what we already know,” Bown said. “It affirms what we know as a community and the work that needs to be done. It's finally acknowledged at the highest level of our lived experiences.”

Bown added more research needs to be done to clearly identify what barriers gender-diverse people face in Canadian workplaces.

Statistics Canada researchers found poverty rates were higher among non-binary and transgender Canadians.

Researchers found elevated poverty rates persisted even after adjusting the data to account for differences including age, education and ethnicity.

Sussanne Skidmore, president of the BC Federation of Labour, said the data confirms that wage gaps are often greater for people who experience discrimination for multiple parts of their personality, including ethnicity, legal status and gender identity.

“That pay gap continues to grow even larger for folks from different equity seeking groups, including those who are gender diverse,” she said.

The earnings gap does not reflect gender-diverse people’s credentials. Statistics Canada found that 38.8 per cent of non-binary people held a bachelor's degree or higher — the highest proportion of any group.

Gina McKay, president of CUPE Manitoba, said the report was evidence of the barriers gender-diverse people face in the workplace.

“We know in the world of work, especially in Canada, that we see wage gaps between rural and urban communities,” McKay said. “That’s also amplified with intersections of gender and race, class and more.”

McKay, who is also equity vice-president for 2SLBGBTQIA + workers at the Canadian Labour Congress, said she’s heard anecdotes from gender-diverse workers who say they start facing discrimination as early as a job interview.

“Oftentimes, folks are overlooked for employment opportunities based on who they are and how they identify versus some of their own credentials,” McKay said. “We know they have different levels of access to jobs.”

McKay added gender-diverse workers are further challenged when they receive gender-affirming care, or update their names or pronouns at work.

Some unions like the B.C. HEU, CUPE and the BC General Employees’ Union have negotiated supports into collective agreements, requiring some employers to let employees change their names, offer up to eight weeks of paid leave and extended health care coverage to help employees receive gender affirming care.

McKay added that many of these measures are not part of employment standards across the country, meaning gender-diverse workers are often forced to seek treatment without support.

“The employer often tries to scramble to figure it out instead of thinking ahead to be more inclusive,” McKay said.

She said these barriers are exacerbated by a rising tide of hate against gender-diverse people in Canada and the United States.

The HEU’s Bown said she’s afraid that hate will only continue to create barriers for gender-diverse people.

“It seems to be bringing up more backlash,” Bown said. “There's a concern in my community, that diversity, equity, inclusivity — because of what’s happening in the United States — will be cut back here.”

Meanwhile, Skidmore said she hopes the data shines a light on workplace inequities gender-diverse people face.

“For governments to be able to sort of close the gap on issues that workers are facing, they need to see data,” she said.

* Story updated on Jan. 5, 2026, at 5:38 p.m. to clarify that some figures referred to workers with a bachelor's degree or higher.