Half of Canadians under 55 fear for their jobs if recession hits – today news


Recession fears are gripping more Canadians

Article content

Article content

Recession fears have been front and centre to start the year, but a new report from the Angus Reid Institute is shedding light on just how widespread those worries are.

The study, released Feb. 1, found that half of all Canadians under the age of 55 are afraid they could lose their jobs in the event of an economic downturn.

The last time fear of job loss was this high was during the beginning of the second year of the pandemic.

Advertisement 2

Article content

“The fear of job loss has stuck with Canadians in recent years, despite the historic low in unemployment that followed the lifting of COVID-19 restrictions,” the study said.

It also pointed to a softening in the labour market, citing a CIBC report that warns consumer spending is already reaching lows “consistent with prior recessions.”

Last week, CIBC senior economist Andrew Grantham said the volume of spending in this country, on a per-person basis, is well below pre-pandemic levels and nearing levels seen only in recessions.

There are already signs that weakness is costing jobs. Employment in retail, restaurants, hotels and other personal services has been trending lower in recent months after only just hitting pre-pandemic levels in mid 2023, he said. This risks becoming a “vicious circle” of lower spending and further job losses.

The Angus Reid report found that a majority of those worried about job loss are more likely to have a smaller financial cushion than they did when fear levels last spiked.

Within two years, the ability of Canadians to handle an unexpected expense has retreated to levels consistent with those seen prior to the pandemic. This comes as high inflation erodes both savings and purchasing power.

Article content

Advertisement 3

Article content

The report found two-in-five of those surveyed say they don’t contribute to a TFSA or an RRSP because “they don’t have enough to save,” despite being in the prime of their working lives.

It also found that a majority of Canadians aged under 55 say they could not handle a sudden expense of more than $1,000 in the coming month. This includes a quarter of women aged 35 to 54 who say they can’t manage any unplanned bills because they are “already too stretched.”

One big factor is the lack of housing affordability, with high rates leaving renters and mortgage borrowers feeling squeezed.

“As rent payments and mortgage payments have risen with interest rates, renters and mortgage holders are much more stressed about money than Canadians with no mortgage,” the report said.

It said 45 per cent of renters and 29 per cent of mortgage borrowers say anything more than $250 would break the bank for them.

The survey by Angus Reid was conducted online from Jan. 16 to 17 among a randomized sample of 1,620 Canadian adults, with a margin of error of +/- 2 percentage points, 19 times out of 20.

 Sign up here to get Posthaste delivered straight to your inbox.

Advertisement 4

Article content

Bank of England
Financial Post

The Bank of England followed central banks in Canada and the United States yesterday, in holding its interest rate steady but signalling cuts were to come — just not right away.

Officials dropped earlier guidance that rates may have to rise again, but also said they need more signs that inflation, now 4 per cent, will fall and stay down sustainably.

Traders held bets that the BOE will deliver at least four quarter-point interest-rate cuts this year, with the first coming in June.

BOE was the first major central bank to lift rates in 2021, and is seen likely to remain at the back of the pack when it comes time to ease.

— Bloomberg

  • Americans get an update on their job market today. Economists forecast U.S. employers added 185,000 jobs in January.
  • Today’s Data: United States factory orders and durable goods orders
  • Earnings: Imperial Oil Ltd, Chevron Corp

Get all of today’s top breaking stories as they happen with the Financial Post’s live news blog, highlighting the business headlines you need to know at a glance.

Financial Post

Advertisement 5

Article content

Recommended from Editorial

Canada’s population is growing, but the taxman’s headcount is growing at an even faster rate. As a result, tax expert Kim Moody says it’s not unreasonable to ask whether or not we’re getting good value for the government’s large annual outlay in salary and other costs for the Canada Revenue Agency. Find out more


Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you wondering how to make ends meet? Drop us a line at aholloway@postmedia.com with your contact info and the general gist of your problem and we’ll try to find some experts to help you out while writing a Family Finance story about it (we’ll keep your name out of it, of course). If you have a simpler question, the crack team at FP Answers led by Julie Cazzin or one of our columnists can give it a shot.


McLister on mortgages

Flummoxed by the mortgage market? Robert McLister is here to help. Today, the Financial Post is launching a new column by the mortgage strategist that will help our readers navigate the complex sector, from the latest trends to complex financing opportunities they won’t want to miss. To kick it off, Rob runs down the 10 things he’ll be watching most closely this year, from the rate-cut waiting game to the rise of the six-month mortgage and more.

Read it here

Today’s Posthaste was written by Denise Paglinawan, with additional reporting from Financial Post staff, The Canadian Press and Bloomberg.

Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@postmedia.com.

Bookmark our website and support our journalism: Don’t miss the business news you need to know — add financialpost.com to your bookmarks and sign up for our newsletters here.

Article content

Source Link