VANCOUVER – A new study from the non-profit Angus Reid Institute (ARI) finds some Canadians struggling more than ever to endure the financial stresses of the pandemic, while others, secured by their relatively strong position of wealth, have seen their economic well-being maintained, if not improved.
Indeed, on the negative end of this spectrum, two-in-five (39%) Canadians say they are worse off now than they were last year.
This represents the largest group saying this in 13 years of tracking by ARI.
This segment of the population is comprised largely of those who have lower incomes, more precarious housing situations, and difficulty keeping up with inflationary trends while relying on stagnant wages.
On the other end of the spectrum are higher-income, low-debt households, who have seen their position either unchanged over the past year or improved.
Notably, amid the highest level of inflation seen in 30 years, approaching three-in-five (57%) Canadians say that it is currently difficult to feed their household.
In 2019, when the ARI asked this same question, 36% said this aspect of their finances was causing them difficulty.
As Canadians endure these challenges, many expect worse to come. One-quarter (23%) of Canadians are optimistic that their financial standing will improve in the next 12 months, but more – 29% – say it will worsen.
Residents in Alberta (49%), Saskatchewan (47%), and Newfoundland and Labrador (47%), are most likely to say they are worse off now than they were last year. At least one-in-three in every region say this, though that group is smallest in Quebec (33%).
Four-in-five Canadians (82%) say that the increase in cost of living has outpaced any income growth they have seen in their household.
Debt remains a major source of stress for one-quarter (24%) of Canadians and a minor concern for two-in-five (42%).
With many economists expecting a rate hike from the Bank of Canada sooner rather than later, one-quarter (25%) of Canadians believe an increase in interest rates would have a major negative impact on their household finances.
