Toronto (Feb 1) – The Bank of Canada’s campaign against high inflation appears to have at least decelerated the rising cost of living, but it remains to be seen if the Canadian economy will escape this inflationary period with a soft landing or a hard one – i.e. with or without a recession and significant job losses.
In the interim, new data from the non-profit Angus Reid Institute finds half of Canadians under 55 worry they will be affected by job loss in the event the economy turns. Further, a majority of the cohort most worried about job loss are more likely to have a smaller financial cushion underneath them to soften a potential blow.
Concerns are highest in Ontario and B.C., where half worry that they or someone else in their household could lose a job because of poor economic conditions.
A majority of under 55s say they could not handle a sudden expense of more than $1,000 in the coming month, including one-quarter of women aged 35- to 54-years-old who say they can’t manage any unplanned bills because they are “already too stretched”.
As housing costs continue rise from this period of high interest rates, renters and mortgage holders feel squeezed. Majorities in those groups also say they don’t have the capacity to accommodate a sudden expense of anything more than $1,000. Meanwhile, that would not be an issue for a majority of homeowners who have paid off their mortgage.
This lack of wiggle room also affects many Canadians’ retirement savings planning. Two-in-five say they don’t contribute to a TFSA or an RRSP because they don’t have anything left to save.
The Angus Reid Institute conducted an online survey from Jan. 16-17, 2024 among a representative randomized sample of 1,620 Canadian adults who are members of Angus Reid Forum. For comparison purposes only, a probability sample of this size would carry a margin of error of +/- 2 percentage points, 19 times out of 20. Discrepancies in or between totals are due to rounding. The survey was self-commissioned and paid for by ARI.
