Working Canadians are facing deteriorating financial wellness, according to a new survey that says the two major causes are an overreliance on debt and soaring housing costs.
On Thursday, the National Payroll Institute released the results of a survey on the financial health of working Canadians. The survey found that despite easing inflation and lower interest rates, “the financial stress storm” the group said it has been tracking since 2021 “continues to intensify.” The survey, conducted by the Financial Wellness Lab of Canada, placed workers into one of three categories: financial coping, financially comfortable or financially stressed.
This year’s results showed that the stressed group rose to 41 per cent of those surveyed from 37 per cent last year. Meanwhile, the comfortable cluster declined from 32 per cent last year to 28 per cent this year. The survey also found that one in four respondents indicated they are living paycheck to paycheck.
“These results are a stark reminder of the growing financial pressures Canadians face,” Peter Tzanetakis, president and CEO of the National Payroll Institute, said in a press release Thursday.
“The increase in financial stress reflects real struggles impacting individuals, families, and workplaces across the country that cannot be ignored. Employees, employers, and policymakers all have a role in improving financial wellness.”
As Canadians have faced more difficult financial circumstances, the survey said the two major causes include an overreliance on debt and soaring housing costs.
The survey notes that 77 per cent of those in the financially stressed group and just under half of all respondents indicated they feel “overwhelmed by debt.” Additionally, the survey said 89 per cent of those in the stressed group and 72 per cent of all respondents said they are “worried about rising housing costs.”
“Nearly 60 per cent of those in the stressed cluster are spending over 40 per cent of their income on housing,” the release said.
Methodology
Results for the sixteenth annual National Payroll Institute Survey on Working Canadians were derived from an online survey of 1,500 employed Canadians, 80 per cent of which were full-time workers. The survey was conducted between July 2 and July 16.
