Inclusion provides financial benefits for economies. When 2SLGBTQI individuals are denied from fully participating in society due to their identity, research has shown that this exclusion negatively affects a country’s economic development and prosperity. However, 2SLGBTQI individuals also benefit society when they are inclusively incorporated into the economy due to their buying power, workforce participation, and tourism.
2SLGBTQI inclusion also supports the overall economy through increased productivity, innovation, and public revenue. There is a positive connection between legal rights for 2SLGBTQI people with growth in a country’s per capita GDP. When countries invest in 2SLGBTQI individuals, such as through education, employment opportunities, and healthcare, economies grow. 2SLGBTQI inclusion does not only benefit 2SLGBTQI communities – it benefits all of Canada.
Still, 2SLGBTQI individuals face numerous barriers that limit their economic potential and ability to live well. Amidst an affordability crisis, 2SLGBTQI individuals are disproportionately disadvantaged across all sectors of society due to discrimination across the workplace, housing, healthcare, and education. 2SLGBTQI individuals frequently experience workplace discrimination, harassment, and are overrepresented in precarious and low-wage employment, leading to higher rates of unemployment and underemployment, particularly for Two Spirit, trans, and nonbinary people. Many 2SLGBTQI individuals experience financial insecurity, with 53% affected by layoffs or reduced hours during the COVID-19 pandemic. Discrimination in education results in higher dropout rates, limiting access to higher-paying jobs. 2SLGBTQI individuals also have higher rates of unmet health needs due to previous traumatic, discriminatory, and exclusionary healthcare experiences. Altogether, these inequities make it more difficult for 2SLGBTQI individuals to afford their basic needs and live healthy lives – a difficulty that is exacerbated by the rising cost of living. Continue reading to learn more on how 2SLGBTQI experiences intersect with the economy in Canada.
The Canadian economy is a diverse and resource-rich system. As one of the world’s largest economies, Canada benefits from its vast reserves of oil, natural gas, minerals, and timber, which contribute significantly to its GDP and exports. Additionally, Canada has robust manufacturing, technology, and service industry sectors, which together account for a large portion of the country’s GDP (Government of Canada, 2025).
Canada’s economy operates with a high level of decentralization, meaning that provincial and territorial governments have considerable power over key economic policies, particularly when it comes to managing resources and infrastructure (Government of Canada, 2021). The federal government oversees national economic matters, such as trade, monetary policy, and taxation, while provincial governments handle issues like healthcare, education, and social programs.
Trade plays a crucial role in Canada’s economy. While Canada has strong trade relations with many countries, the United States remains Canada’s largest trading partner, with trade agreements like the Canada-United States-Mexico Agreement (CUSMA) further solidifying this economic bond (Government of Canada, 2024). However, this relationship is currently volatile, with the United States waging a trade war against Canada that will have far-reaching economic impacts on both sides of the border.
Affordability has become a growing concern across the country, particularly for housing, food, and everyday expenses. The rising cost of living has outpaced wage growth, making it increasingly difficult for many people in Canada to afford basic necessities (Paas-Lang, 2022). Inflation has significantly impacted the affordability of basic needs, such as food, transportation, and utilities (Evans, 2022; The Canadian Press, 2025). The cost of groceries has surged due to supply chain disruptions, climate-related factors, and corporate price increases. Many individuals in Canada are now turning to food banks at unprecedented rates, highlighting the growing challenge of food insecurity (Food Banks Canada, n.d.). Additionally, gas prices and public transit costs have increased, placing further strain on low- and middle-income households (Walter, 2024). While federal and provincial governments have implemented temporary relief measures, such as grocery rebates and fuel subsidies, long-term solutions are needed to ensure financial stability for vulnerable populations.
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