More than half (56 per cent) of Canadian employees say they’re less productive at work due to financial concerns, according to a new survey by the National Payroll Institute.
The survey, which polled 1,500 employees, found the percentage of Canadians who consider themselves financially stressed increased to 41 per cent from 37 per cent in 2023. At the same time, the percentage of respondents who consider themselves financially comfortable decreased to 28 per cent from 32 per cent in 2023. Indeed, more than a quarter (29 per cent) of Canadians earning $100,000 or more annually are still living paycheque to paycheque, dispelling the myth that financial stress is exclusive to lower-income households.
Nearly half (45 per cent) of workers said they spend at least 15 minutes per day thinking about their finances on the job and one in 20 said they spend more than 90 minutes daily. The time spent worrying about finances at work equates to $53.9 billion in lost productivity each year — up from $46 billion in 2023, $40 billion in 2022 and $27 billion in 2021.
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Nearly three-quarters (72 per cent) said they’re feeling the pressure of higher housing costs. Among respondents who said they’re financially stressed, almost eight in 10 (77 per cent) said they feel overwhelmed by their debt and 60 per cent reported spending more than two-fifths of their income on housing.
Two-thirds (66 per cent) of financially-stressed respondents reported negative effects on their relationships, while 36 per cent said they’ve become more socially disconnected and 23 per cent said they’ve lost sleep due to finance-related anxiety.
“These results are a stark reminder of the growing financial pressures Canadians face,” said Peter Tzanetakis, president and chief executive officer at the National Payroll Institute, in a press release. “The increase in financial stress reflects real struggles impacting individuals, families and workplaces across the country that cannot be ignored. Employees, employers and policymakers all have a role in improving financial wellness.”