A growing number of Canadian households are finding it increasingly difficult to keep up with the rising cost of living, according to a new Economic Inclusion and Mobility Intelligence Memo released by the Financial Resilience Institute in partnership with Coast Capital.
The report highlights a grim reality: 84% of Canadians say their household income has failed to keep pace with inflation over the past year, signaling widespread financial strain. This data underscores the urgency of tackling barriers to economic inclusion, which leave more than half of households struggling to earn enough to make ends meet.
Eloise Duncan
“Economic exclusion is a key driver of financial vulnerability,” said Eloise Duncan, CEO and Founder of the Financial Resilience Institute. “Even with over a third of households taking on side gigs, 77% of Canadians report experiencing financial vulnerability. It’s clear that more needs to be done to expand access to economic opportunities and address systemic barriers.”
The memo’s findings paint a stark picture:
- 55% of households face barriers to earning more income, with 25% strongly agreeing that these barriers significantly impact their financial resilience.
- Households experiencing these barriers scored an average of 42.6 on the Financial Resilience Index—20 points lower than those without such challenges.
- Job insecurity affects 39% of Canadians, with 40% of this group categorized as “extremely vulnerable” (scoring 0–30 on the Index).
- Nearly one in five Canadians reported income volatility, with significant month-to-month fluctuations leaving them more financially exposed.
Maureen Young
Maureen Young, Vice President of Social Purpose at Coast Capital, emphasized the importance of actionable insights from the report. “This data tells a powerful story of resilience, but also of the barriers that need to be broken down. As a trusted financial partner, we’re committed to tailoring advice, education, and solutions to help Canadians unlock financial opportunities,” said Young.
For Canadians seeking immediate support, the Financial Resilience Institute offers tools like a free financial resilience score calculator and a resource bank to help households navigate challenges and build their financial well-being.
Both organizations remain committed to leveraging data, partnerships, and innovative solutions to foster economic mobility and resilience across the country.
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Podcast. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 as one of the Top 10 Business Journalists in the World by PR News – the only Canadian to make the list. He was also named by RETHINK to its global list of Top Retail Experts 2024.
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