Nearly a third of working Canadians are living paycheque to paycheque, a new payroll institute survey says

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePersonal FinanceNearly a third of working Canadians are living paycheque to paycheque, a new payroll institute survey saysFinancial stress is costing employers an estimated $74.3 billion in lost productivity, according to the National Payroll InstituteLast updated 30 minutes ago Everyday costs, particularly for groceries and household products, were the top source of financial stress (55 per cent), followed by personal debt (46 per cent) in the survey. Photo by Julie Alex K/Getty ImagesWe independently select everything we recommend. Buying through us may earn us a commission, which supports our work.Twenty-eight per cent of working Canadians are living paycheque to paycheque and would struggle to meet their financial obligations if their pay was delayed by just one week, according to a survey from the National Payroll Institute released Tuesday.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThis climbed from just under a quarter last year to its highest level in five years, said Peter Tzanetakis, president and chief executive at the institute.And about 44 per cent of working Canadians are now financially stressed, rising from just one third last year to a record high, according to the institute.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThis is more than double the proportion of respondents who reported being financially comfortable.“It’s more than a warning sign,” said Peter Tzanetakis, president of the National Payroll Institute. “The jump in financial stress that we’ve seen just in the course of one year can be characterized as a financial crisis.”Everyday costs, particularly for groceries and household products, were the top source of financial stress (55 per cent), followed by personal debt (46 per cent) in the survey.The forced savings accumulated during the peak of the COVID-19 pandemic as more Canadians stayed at home have dissipated, said Tzanetakis. “What’s happened of late is people are back at work, inflation is significant, rising costs and housing affordability are all contributing to this financial stress.”Consumer prices climbed three per cent in August compared with the same month a year ago, according to the latest inflation data from Statistics Canada, with gas prices surging nearly 23 per cent.Half of employed Canadians now spend all or more of their net pay, jumping from 41 per cent in 2025, according to the institute. Tzanetakis said this a huge problem, as eroded savings means working Canadians cannot easily absorb financial shocks or even rising costs.This can also lead to greater reliance on high-interest debt, such as credit cards, to fund the costs of everyday essentials, he added. “That just exacerbates the problem because they are in that cycle of increasing their debt just to meet their financial obligations, and it’s a tough situation to get out of.”Across the country, Ontarians and Albertans reported the highest levels of difficulty meeting financial obligations if their paycheques were delayed by one week, at 31 per cent each. In Alberta, well over half of respondents reported spending all or more of their net pay and said that groceries were their biggest source of financial stress.Higher financial stress among working Canadians comes with broader economic repercussions, Tzanetakis said. According to calculations from Canada’s Financial Wellness Lab, based at the University of Western Ontario, financial stress is costing employers and the Canadian economy an estimated $74.3 billion in lost productivity. This shows up through reduced motivation and productivity, taking more personal or sick days and strained workplace interactions, according to the report.We apologize, but this video has failed to load.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.