‘Youth-cession’ sees young Canadians struggling most, poll data shows

A new study shows younger Canadians are particularly vulnerable to economic shocks as many struggle with finding stable employment that matches the cost of living.

The Canadian economy is facing challenges stemming from the current trade war with the United States, and younger Canadians in particular are experiencing severe financial strain, according to the latest study.

Combined with consistent signs of a weakening youth labour market, some experts say young Canadians may be in an economic recession of their own.

“It’s hard to argue that (Canadian) youth are not in some kind of ‘youth-cession,’ given what is happening to the jobs that are most often hiring them in retail and in hospitality — they (the jobs) ain’t there,” says economist Armine Yalnizyan, who is also an Atkinson Fellow on the Future of Workers.

“Some of the basics of life are getting more expensive at a time when wage growth is slowing. That’s a real problem for a lot of people. Young people are really getting hit on the head with the trends that are taking place right now.”

Accounting firm and insolvency trustee MNP released its latest Consumer Debt Index, which collected responses from a variety of Canadians in June on issues like affordability and the cost of living, financial planning, as well as the amount of debt they are taking on.

The study, which is conducted every three months, found younger adults and lower-income households felt the most strained and “stalled” when it came to their financial goals.

Nearly half (45 per cent) of respondents aged 18-34 said they felt anxious or stressed about their financial situation, and a third (33 per cent) of those younger Canadians polled said they felt like their lives were on hold because of their finances. Plus, 37 per cent of Canadians polled aged 18-34 said they felt stuck living paycheque to paycheque.

Younger Canadians are also the least likely to be able to set money aside for important life goals, according to MNP.