Ontario fares worse than most U.S. states on living standards

A new report found that most Canadian provinces have fallen behind U.S. states when it comes to living standards.

The study, published Oct. 8 by the Fraser Institute, looked at how Canada's provinces have stacked up against U.S. states economically, comparing everything from gross domestic product (GDP) per person and employment income to private-sector jobs and productivity. It examined how things have changed since 1999, using the latest available data from 2024.

Back in 1999, six provinces ranked among the 10 lowest, but that number has now gone up to seven, with Alberta falling from seventh place to 25th.

Despite the drop, Alberta remains Canada's top-performing province and the only one to land in the top half of the ranking.

According to the report, New York led with a GDP of $134,470. Alberta came in 25th place with $74,907.

Saskatchewan ranked 35th, with a GDP of $70,921 — just edging out Florida — while B.C. placed 49th with $60,131.

New Brunswick came in last with a recorded GDP of $46,467, behind Prince Edward Island and Nova Scotia.

Other provinces near the bottom included Ontario in 51st place, Newfoundland and Labrador in 52nd, Quebec in 55th, and Manitoba in 56th.

Source: Fraser Institute.

The findings went beyond GDP, too.

The report found that median employment income in every U.S. state was higher than in every Canadian province in 2024, with all provinces landing in the bottom 10 for this measure. Alberta was also the only place in either country where the median employment income declined over the period studied.

Labour productivity was another area where Canadian provinces lagged.

According to the report, all but five U.S. states saw stronger productivity growth than every Canadian province. Prince Edward Island was the only spot among both countries where productivity actually declined by 2024.

The full report can be found on Fraser Institute's website.