In the survey, which has been conducted since 1990, a record proportion of Canadians are feeling financially worse off than their parent’s generation, though this sentiment is most noticeably growing among younger adults.
The survey measures social mobility with two critical questions: Are Canadians better off materially than their parents at a similar age and do they think future generations will have a better quality of life? Both questions are seeing sharp rises in negative responses. 39 per cent of Canadians now report that they are worse off financially than their parents, a record low. Just 40 per cent believe they are better off – the first time less than half of respondents have expressed optimism about their financial standing compared to previous generations.
This pessimism is most common among younger Canadians, with more than half of those aged 18 to 44 feeling worse off than their parents, and more than 50 per cent of Canadians aged 18 to 59 believing things will be even worse for future generations. For the most part, economic indicators are favourable, with low unemployment, moderate inflation, and stable GDP; however, many feel these metrics fail to reflect the broader sense of financial struggle.
Several factors underpin this gloomy outlook. The main driver is unaffordability, while global political uncertainty and aftershocks of the COVID-19 pandemic dampen expectations for economic recovery and stability. According to Andrew Parkin, executive director of the Environics Institute, many had hopes for post-pandemic improvements in living standards but challenges persist and have disheartened the young.
In 2022, optimism was relatively higher, with 53 per cent of Canadians saying they felt better off than their parents-the highest proportion since the survey started. For its part, the current survey would suggest that the economic hardship experienced during the pandemic has not abated as many people may have hoped and is feeding into a general feeling of frustration.
Laura Doering, associate professor at the University of Toronto, says owning a home is still viewed as a key marker of financial success and adulthood in the country. Where home ownership becomes increasingly unattainable, young Canadians question whether it’s time to rethink the traditional path to financial security.
Besides financial concerns, a more recent stage of larger issues gives rise to these feelings of instability. Climate change, with its increased extreme weather events, and international conflicts have all contributed to the feeling of uncertainty about the future. Parkin underlined the fact that this is a sign of a level of duress perhaps not reflected by more traditional economic measures alone and speaks to a finer-grain comprehension of difficulties facing younger Canadians today.
Contact Accountancy Insurance
We would love to hear from you.
About Accountancy Insurance
Thousands of accounting firms offer our tax audit insurance solution, Audit Shield to their clients.
Find out why.