Survey Reveals Canadians’ Lowest Confidence Levels in Financial Matters
Research recently released suggests that Canadians’ confidence in their personal finances has reached an all-time low.
According to a report from Nanos Research, confidence levels are now lower than they were during the 2008 financial crisis. More than half of Canadians surveyed by Nanos indicated that their personal finances were worse off in the first week of May compared to the previous year, while 37 percent reported no change in their financial situation.
Chief data scientist Nik Nanos mentioned in the report that only 10 percent of Canadians reported an improvement in their finances compared to a year ago—which is the lowest reported score on record. This is a decrease of five percentage points from the previous month.
Furthermore, Canadians expressed little optimism about the economy, with the majority believing it would either worsen or remain stagnant.
The Nanos Pocketbook Index, which tracks public perception of personal finances and job security, also fell during the first week of May. With a score of 50, it matched the low reached during the peak of the pandemic in April 2020 when Canada’s GDP dropped by 10.7 percent.
Related Stories
Especially concerning was the perception among the youngest respondents, as the index dropped to 40 for those aged 18 to 29—the lowest figure recorded in the 16-year history of the index.
Collaborating with Nanos for the survey, Bloomberg reported that the youth index “has been in free-fall since the last week of March,” falling by 17 points in just five weeks.
Housing
Canadians also hold a pessimistic view regarding housing prices, with over half of the respondents believing that real estate prices will increase in their neighborhoods, while 35.6 percent expect them to remain the same. Only 9 percent anticipate a decrease in prices.
Last month, the cost of housing across Canada hit a 30-year high, exacerbating the affordability crisis nationwide. According to an RBC report, the average Canadian household needed to allocate 63.5 percent of its income in the fourth quarter of 2023 to cover the expenses of owning a typical market-priced home.
Employment
Despite the prevailing negative sentiments concerning personal finances, 46 percent of Canadians expressed confidence in their job security, while 14.8 percent felt somewhat secure. On the other hand, 4.8 percent felt somewhat insecure, and 9.5 percent did not feel secure at all in their employment.
In April, employment in Canada increased by 90,000 or 0.4 percent, stabilizing at 61.4 percent after approximately six months of decline, according to Statistics Canada. The unemployment rate remained unchanged at 6.1 percent.
Men and women aged 25 to 54 saw employment gains of 41,000 or 0.6 percent among men and 27,000 or 0.4 percent among women. Additionally, younger individuals aged 15 to 24 experienced an increase in employment numbers by 39,000 or 2.8 percent.
