More than one-third of working-age Canadians feel financially stressed, up 20 percent from last year, according to new research.
The National Payroll Institute released its annual survey of working Canadians on Oct. 3 and said the findings show the “financial stress storm, which began in 2021, is far more intense than predicted,” and will continue to grow—fueled by inflation, interest rates and the rising cost of living.
He said that reducing debt, saving more, and spending less are the primary factors that determine if individuals are financially comfortable, coping, or stressed.
“With interest rates, inflation and the cost of living all continuing to rise, for many working Canadians navigating these factors have negatively impacted their financial wellness, and they need to take immediate and urgent action to keep from being overcome,” said Mr. Tzanetakis.
Living Paycheque-to-Paycheque
The majority of Canadians, 66 percent, said they are living paycheque-to-paycheque, and 50 percent are overwhelmed by debt. Only 2 percent of those who described themselves as financially comfortable, and 9 percent of those who said they were financially coping, reported living paycheque-to-paycheque.
Many workers, 40 percent, also said financial stress is affecting their job performance. “On a daily basis, the average Canadian worker spends 33 minutes thinking about their finances while at work – equating to $45 billion dollars in lost productivity to Canadian employers,” said the report.
One in five surveyed said they had used a sick day to cope with rising levels of financial stress, and one in ten left their job entirely. Even earning more money isn’t helping some Canadians.
According to Chuck Grace, professor at the Ivey Business School at Western University, and managing director of Canada’s Financial Wellness Lab, 35 percent of those who consider themselves growing more financially stressed earn more than $100,000 per year, claiming their debt levels are playing a factor.
“The costs of servicing debt in an economic environment marked by high-interest rates makes saving money for the rainy days still ahead much more difficult,” Mr. Grace said in the release. “Using more and more debt compounds the problem.”
The 15th Annual National Payroll Institute Survey of Working Canadians is an online survey of 1,500 working Canadians (81 percent of whom are full-time employees), with the most recent data collected between July 21 and Aug. 1.
