Canadians continue to feel the pinch in their wallets as inflation, interest rates and the cost of living create an “intensifying storm of financial stress,” according to a study by the National Payroll Institute.
The survey of 1,500 working Canadians, 81% of whom are full-time workers, found that the number of people who say they are financially stressed has increased by 20% in the past year to 37%. It has been found.
Peter Zanetakis, president of NPI, said the organization has been conducting research since 2014 to help individuals determine whether they are “comfortable, coping, or stressed” financially. They found that it reduced debt, increased savings, and reduced spending.
“There’s a financial storm brewing, and it’s really picked up steam over the past year,” he said in an interview.
The NPI report suggests that saving is now more difficult than at any point in the past decade, with 63% of those surveyed spending their entire net paycheck to “avoid the rising tide”. 30% said they were spending even more. Instead, it means they’re taking on debt and dipping into their savings with each pay cycle.
The research goes further and shows that 66% of people who consider themselves to be “financially stressed” are living paycheck to paycheck, and 50% feel “overwhelmed” by debt. It turned out that
With Canadians facing such burdens, personal finance expert Rubina Ahmed Haq said people can consider a variety of options, including debt consolidation, but also home renovations and postponing family vacations. , says they can also look at what costs can be cut.
Personal finance show host Ahmed Haq said: “You’ll feel like your cash flow is a little bit better, and you won’t be in more debt, because when you take on a big project, the costs often go up significantly.” Because there is,” he said. for what’s worth on the Corus Entertainment Radio Network.
Corus is the parent company of Global News.
For some Canadians, additional worries about finances are impacting social isolation. Among Canadians who identify as part of an economically stressed group, 55% say the rising cost of living has increased their sense of isolation, which is impacting those close to them. It says that there are.
One in two people said their stress was felt by a loved one.
For some people, stress is affecting their performance at work, with 40% saying it’s having a negative impact, and according to NPI, one in five people are struggling to cope with increased stress levels. One in 10 people quit their jobs after admitting they needed sick leave. work.
“They feel it at home, but they also carry it with them to work. And they spend an average of 30 minutes a day worrying about, thinking about, and dealing with their finances. “We spend a lot of time doing things like that,” Tsanetakis said. “This creates a situation where productivity in the workplace is reduced.”
Meanwhile, among employers looking to hire, 92% of those surveyed say they face challenges finding and attracting skilled talent, according to new research from recruitment firm Robert Half. .
The survey considered responses from more than 1,300 recruiters and 1,700 workers earlier this year.
The agency says the demand for skilled talent continues to outstrip the supply of candidates, and recruiters face challenges both in attracting and retaining employees, which means that pay, benefits, flexible working options and He says he is trying to deepen his knowledge of morphological trends.
Research shows that half of job seekers expect companies to disclose salary ranges in job postings, and 63% say they would be removed from the hiring process if an employer does not provide salary information upon request. ing.
In contrast, 80 percent of managers surveyed reported including salary ranges, and about half said it helped them attract the talent they wanted. Masu.
Canadians continue to apply for new jobs and side jobs to supplement their incomes, but many have expressed dissatisfaction with the hiring process, including a lack of pay transparency and the time it takes to get hired. There is. Managers say time-consuming issues are a problem, but so are poor cultural fit and poor communication.
NPI’s report says that while earning more money through a raise or side hustle may help with financial health, research suggests it may not actually be the solution. It is pointed out that there are.
Chuck Grace, managing director of Canada’s Financial Wellness Lab, said in a statement that 35 per cent of the “stressed population” actually earn more than $100,000 a year.
He said a solution that could act as a stress reliever is to reduce reliance on debt and consolidate its financial resources to repay it more efficiently.
“The more debt you have, the more complicated the problem becomes,” he says.
However, NPI encourages employees to deposit a portion of their paychecks into savings accounts and suggests that companies invest in “payroll professionalism” to prevent unintentional payroll delays, and encourages employers to may also step up.
Canada’s unemployment rate is currently low at 5.5 per cent and wages are rising, Tsanetakis added, adding that people should prepare for potential futures, such as when the unemployment rate rises or people lose their jobs. Ta.
“So if they can’t manage their household finances in a way that helps them get out of that, there could be more turbulent times ahead,” he said. “If the economy picks up and unemployment starts to rise again and, you know, people actually lose their jobs, or members of their households actually lose their jobs, then the economic situation becomes even more difficult. There is a possibility.”
Ahmed Haq said writing down monthly expenses can be helpful when people are trying to find ways to reduce stress.
“There’s always a place where you can be saved.,” she said.
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