There more financial winners —and losers — economic stress index finds
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The number of Canadians feeling no economic pain has grown even though inflation and higher interest rates have financially straitjacketed many people, according to an index measuring economic stress.
But as the share of the population at the top of the financial ladder increases, so has the share of those struggling at the bottom, the Angus Reid Institute said in its latest Economic Stress Index, calling the results a “tale of the have and have-nots.”
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Over the past 18 months, the proportion of the population in the index’s “thriving” group has grown six percentage points to 25 per cent. But the “struggling” group’s share has increased four percentage points to 29 per cent, while the financial middle — the “comfortable” and “uncomfortable” — has shrunk to 24 per cent and 22 per cent, respectively, from 31 per cent and 26 per cent, according to data released on March 21.
On the “have” side, a majority expect their financial outlook over the next 12 months to only get better.
“Almost none of the thriving expect to be worse off next year, and, in fact, three in five say they expect even better,” Angus Reid said in the study. “Their housing, food and debt-related challenges are minimal.”
But 61 per cent of those who are struggling said they are likely staring at more financial stress over the next year, while coping with grocery and housing costs will be a challenge “near-unanimously felt,” Angus Reid said.
Angus Reid placed the 4,550 adults surveyed into four categories based on their economic perspectives, self-declared level of debt and how easy or hard it is for them to pay for groceries and housing costs.
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“Not all lower-income households are struggling or uncomfortable, but there is certainly a correlation between income and placement on the index,” Angus Reid said. “Even among those in the higher-income brackets, however, one in five say they face significant financial stress.”
Twenty per cent of households earning more than $200,000 per year said they were struggling compared with 35 per cent earning less than $50,000. Those aged 35 to 54 made up the largest share in the struggling and uncomfortable categories.
“Those who have kids in their household are significantly more likely to face financial stress,” Angus Reid said.
By region, 36 per cent in New Brunswick said they were struggling, making it the most stressed province. The least stressed was Quebec, where 33 per cent said they were thriving.
Angus Reid asked those surveyed to rank nine issues that dominate the national outlook: cost of living/inflation, health care, housing affordability, environment/climate change, income inequality/poverty, deficit/government spending, economy, crime/public safety and taxes.
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All four groups identified the same three issues as their top concerns: cost of living/inflation, health care and housing affordability.
Among those struggling, 71 per cent identified the cost of living/inflation as the No. 1 issue, followed by housing affordability at 38 per cent and health care at 36 per cent. The cost of living/inflation also ranked first for the uncomfortable and comfortable at 63 per cent and 59 per cent, respectively, but it was ranked second behind health care by those thriving.
The survey was conducted Feb. 28 to March 6.
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Today’s Posthaste was written by Gigi Suhanic, with additional reporting from Financial Post staff, The Canadian Press and Bloomberg.
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More Canadians say they're wealthy, economic stress index finds - Financial Post
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