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Despite a strong recovery since the recession, Canada’s labour market has weakened since mid-2014 due to low commodity prices. Unemployment has risen to above the average across OECD countries. At 6.9% at the end of 2016, it is also still above the pre-crisis level (5.9% in 2007).
The tax burden on labour income is expressed by the tax wedge, which is a measure of the net tax burden on labour income borne by the employee and the employer.
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Canada had the 26th lowest tax wedge among the 35 OECD member countries in 2016. The country occupied the same position in 2015. The average single worker in Canada faced a tax wedge of 31.4% in 2016 compared with the OECD average of 36.0%.
These country specific notes provide figures and commentary from the Taxation and Skills publication that examines how tax policy can encourage skills development in OECD countries.
As part of the STI Outlook 2016, the OECD has released policy profiles by country. These include cross-country analyses that draw on the first joint EC-OECD survey on STI policies. They focus on major STI policy areas, instruments and trends.