MNP president Grant Bazian on a job market that has 25% of workers staying put
Concern about job mobility and career opportunities extends to 55 percent of working Canadians, rising to 60 percent among working Gen Z and 59 percent among working Millennials, in national survey results released Monday.
In the 38th wave of the MNP Consumer Debt Index, compiled by Ipsos for MNP LTD, 54 percent said they do not have enough savings to support themselves or their family for six months if they lose their job without borrowing or falling behind on bills.
Forty-two percent said they are concerned artificial intelligence could negatively affect their employment or income.
"Carrying debt can feel much more precarious when Canadians are not confident they could replace their income if their job situation changed," said Grant Bazian, president of MNP LTD, in the release.
The index rose to 95 points, up four points from the previous quarter, though MNP said confidence remains below historical levels.
Forty-four percent, down two points, reported being $200 or less away from financial insolvency each month.
Thirty-two percent of working Canadians said they worry they would struggle to find a new job offering similar pay and benefits, and 23 percent said there are fewer opportunities in their field or industry, according to the MNP release.
Twenty-five percent said they are reluctant to leave their current job because of job market uncertainty, 20 percent said they would like to change jobs but do not feel financially secure enough to risk a period of lower or no income, and 19 percent said they feel less secure in their job than a year earlier.
Twenty-four percent of all Canadians, and 27 percent of working Canadians, said tariffs, trade disputes, or broader economic instability could negatively affect their job or income.
Forty-seven percent of Canadians said they have tried to earn additional income, most often by selling goods online at 21 percent, followed by learning new skills at 11 percent, working a second job at 9 percent, monetizing a hobby, skill, or passion project at 9 percent, and freelance or contract work at 8 percent.
Thirty-four percent of Millennials reported selling goods online.
Among Gen Z, 22 percent reported learning new skills, 16 percent a second job, 14 percent monetizing a hobby or passion project, and 9 percent using AI tools to generate income.
"There is a meaningful difference between earning extra money to get ahead and depending on it to keep up," Bazian said in the release.
MNP noted the Bank of Canada has held its policy interest rate at 2.25 percent.
Sixty-one percent, down one point, said they need interest rates to go down, and 43 percent, down two points, said they are concerned about their ability to repay their debt even if rates decline.
Twenty-two percent, up one point, said they could absorb an additional $130 in monthly interest payments in Canadian dollars, while 35 percent, unchanged, said they could not.
Thirty-six percent, up two points, said they are not confident in their ability to cope with loss of employment or changes in wage or seasonal work without increasing their debt.
