New survey highlights alarming levels of financial stress
North Americans are enduring their greatest levels of financial stress since at least the global financial crisis of 2008, according to a new survey by Ceridian and the Financial Wellness Lab of Canada at Western University.
The poll of approximately 4,200 workers across Canada and the United States found that as much as 61% of employed North Americans are more stressed about their finances today than they were compared to a year ago.
The combination of elevated inflation and rising interest rates has pushed 54% of North American workers to tap into their emergency savings accounts so that they can pay for necessities this year. The share spiked to 67% among those who considered themselves financially stressed.
How are North Americans planning to cope with financial stress?
The majority (78%) of respondents said that they plan to increase their incomes next year, with 33% saying that they will be getting second jobs or side gigs to augment their pay.
More than four in five (81%) respondents said that they will manage their financial stress by significantly reducing their discretionary purchases on take-home meals, entertainment, and shopping.
“Whether workers are highly stressed or comfortable about their financial situation, many are dipping into savings and planning to reduce debt. This signals widespread financial insecurity across all demographics,” said Matt Davison, dean at Western University and lead researcher for the Financial Wellness Lab of Canada.
“Many are looking for solutions outside their control like asking for a raise or a promotion, but that doesn’t always guarantee the financial buffer they seek.”
