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Global News
6 days ago
- Business
- Global News
‘Youth-cession' sees young Canadians struggling most, poll data shows
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.' Story continues below advertisement What does the study show? 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. Story continues below advertisement 'Those making careful choices and delaying major decisions may be struggling to get ahead amid the current uncertainty around costs and income,' says president Grant Bazian at MNP. 'For many vulnerable households, particularly younger adults and lower-income Canadians, it may feel like they're constantly putting out financial fires.' 4:09 Student job seekers could face tough summer Why are younger Canadians feeling the pinch? The most recent Statistics Canada report on the labour market showed youth unemployment sitting at 14.2 per cent, up from 10.8 per cent before the pandemic in 2019. For students focused on seasonal summer work, the unemployment rate was 17.4 percent in June, compared to 15.8 per cent in 2024. Story continues below advertisement Although many young Canadians are putting off long-term financial goals to make ends meet, it still may not be enough to get by. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy 'The pure scale of people struggling is really an alarm bell because it's not going to get easier as the tariffs really kick in and inflation continues to rise,' says economist Armine Yalnizyan, who is also a Fellow on the Future of Workers at the Atkinson Foundation. 'The tariff uncertainty means that fewer people are hiring, more people are laying off, and unemployment rates for young people are very elevated compared to previous years.' Who's benefitting? The MNP study shows the average Canadian household is ending each month with more money left over than before, but this is not consistent with each demographic. Based on the findings in the study, households with higher incomes and less or no debt at all are better able to reduce their spending amid economic uncertainty and set aside funds in case of future financial burdens. Story continues below advertisement This as the trade war and United States President Donald Trump's tariffs has most economists predicting Canada's economy will take a hit in the form of higher prices and potential job losses. The MNP report shows one third (33 per cent) of all Canadians are increasing savings or 'building emergency funds,' and two in five (41 per cent of) respondents said they are reducing their non-essential spending. In doing so, MNP reports Canadians on average had $916 left at the end of the month, which is $49 more than the last report and the second-highest recorded amount since 2017. Although this is seemingly a good sign, it was mainly older and middle- to higher-income households which were able to do so compared to younger and lower-income Canadians. For instance, Canadians aged 55 and older were saving on average $84 more every month in the three-month period leading up to June than the previous report, and those households earning between $60,000 and $100,000 reporting an increase of $260 each month. When it comes to savings goals, one third of respondents (33 per cent) aged 18-34 said they were putting those aims on hold compared to less than a quarter (23 per cent) of all Canadians polled. This means that because of the reported day-to-day affordability struggles of so many younger and lower-income Canadians, they may not be as able to save for their long-term financial goals. Story continues below advertisement 'We are looking at 'scarring' for millions of young people who will not be able to launch their lives — forget about their careers,' says Yalnizyan. 'This is just a generalized failure to launch if you cannot get a foot in the door for self-sufficiency through the labour market.' 1:46 Charities providing essential period products as cost of living rises How could the situation improve/get worse Experts say the trade war is one of the reasons the labour market has weakened as businesses slow or pause hiring, and even lay people off to reduce costs. Story continues below advertisement 'This whole thing is unfolding because of the uncertainty unleashed by the tariff threats. We could be making every job a good job at this moment if it wasn't for those factors,' says Yalnizyan. 'We had all the fixings for one of the best economies in the world until January.' Although Prime Minister Mark Carney is still working with Trump on a new trade deal, Yalnizyan said public policy will also be crucial to help support the Canadian labour market and improve affordability — especially for young people. 'It's really time for the public sector to step up to the plate and make sure all the money that we are spending, which is our taxpayer money, is actually including a factor that brings along the next generation in not only training, but in jobs in construction, infrastructure and in healthcare,' says Yalnizyan. 'There are crises in all of these elements that could actually be incredible sources of jobs for young people, but you have to design public policy to do exactly that — not just leave it to the markets.'
Yahoo
7 days ago
- Business
- Yahoo
Nearly two-thirds of Canadians want interest rate cuts as financial anxiety grows: Poll
Following two consecutive interest rate pauses by the Bank of Canada (BoC), Canadians continue to feel financial pressure, with many stuck delaying major life goals amid ongoing economic uncertainty, according to the latest MNP Consumer Debt Index released Monday. Nearly two-thirds of Canadians (64 per cent) say they desperately need interest rates to fall, given the financial constraints they're under. Over one-third (36 percent) report feeling anxious or stressed about their financial situation, while one-quarter say they've had to stall life plans (26 per cent) or are constantly putting out financial fires due to an endless stream of unexpected costs (24 per cent). Younger adults and lower-income households are the most likely to report financial strain and feeling stalled, the survey found. 'Canadians have not witnessed such economic uncertainty since the pandemic. We see some stability in financial perception, but many households feel like their lives are on hold, stuck in a financial holding pattern as they wait for the proverbial dust to settle,' said Grant Bazian, president of insolvency firm MNP, in a statement. 'Given the persistent economic pressures and backdrop of global volatility, many are hesitant to make major financial or life decisions, unsure of what lies ahead.' In response to mounting financial pressures, 41 per cent of Canadians have reduced discretionary spending, 33 per cent are increasing savings or building emergency funds, and 27 per cent are prioritizing debt repayment. Nearly one-quarter (23 per cent) are putting life goals on hold, such as buying a home, starting a family or changing careers. Canadians aged 18 to 34 are most likely to postpone these milestones. Over one-third of Canadians (41 per cent) fear that rising interest rates could drive them towards bankruptcy. And, even if rates were to decline, 45 per cent of Canadians remain concerned about their ability to repay debt. According to Bazian, approximately 14 million Canadians say they are close to insolvency. 'There are some persistent fears around interest rates,' he said. 'For some households, the damage has already been done. After years of rising costs, high interest rates and depleted savings, there may be some deep anxieties about what could still be to come.' Even economists are divided on what the Bank of Canada will do next, Yahoo Finance Canada previously reported. In June, economists at Royal Bank and Scotiabank forecast there will be no further rate cuts in 2025, while economists at BMO and Desjardins Group, alternatively, expect a further 75 basis points of cuts by the end of 2025 or early 2026, which would bring the BoC's overnight rate to two per cent. Amid ongoing uncertainty, more Canadians appear to be building financial buffers to safeguard against future economic disruptions. The average amount households have left at month-end has risen to $916, up from just $49 last quarter — the second-highest level since MNP began tracking this data in 2017. The largest increases were among Canadians aged 55 and older (up $84) and middle- to higher-income households. Those earning between $60,000 and $100,000 saw the biggest gains (up $260), followed by households earning over $100,000 (up $129). 'These are small but encouraging signs that some households may be regaining a bit of financial footing,' Bazian said. 'While challenges remain, any movement towards greater stability is meaningful in this environment.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CTV News
7 days ago
- Business
- CTV News
Alberta leads the country in people reporting financial stress, cautious spending
The latest MNP Consumer Debt Index suggest nearly half of Albertans are $200 or less away from financial insolvency. (File) Albertans are more likely than any other province to report feeling stressed about their finances, according to a new report. The latest MNP Consumer Debt Index shows 41 per cent of Albertans polled say they feel anxious about their financial situation. The report shows two-in-five Albertans are concerned rising interest rates could drive them toward bankruptcy. That same amount are also feeling more cautious with how they manage their money due to current financial pressures; Alberta tops the list in this category. Nearly half of Albertans (47 per cent) say they are $200 or less away from financial insolvency, which is up slightly from the last report. Significantly more Albertans this quarter are concerned about interest rates, with nearly two-in-five concerned rising interest rates could drive them toward bankruptcy Even if rates do go down, many Albertans (46 per cent) remain concerned about their ability to repay debt. This survey was conducted by Ipsos and included interviews with 2,003 Canadian adults conducted between June 9 to June 13. The results are accurate to within +2.5 percentage points, 19 times out of 20.
Yahoo
14-07-2025
- Business
- Yahoo
Nearly two-thirds of Canadians want interest rate cuts as financial anxiety grows: Poll
Following two consecutive interest rate pauses by the Bank of Canada (BoC), Canadians continue to feel financial pressure, with many stuck delaying major life goals amid ongoing economic uncertainty, according to the latest MNP Consumer Debt Index released Monday. Nearly two-thirds of Canadians (64 per cent) say they desperately need interest rates to fall, given the financial constraints they're under. Over one-third (36 percent) report feeling anxious or stressed about their financial situation, while one-quarter say they've had to stall life plans (26 per cent) or are constantly putting out financial fires due to an endless stream of unexpected costs (24 per cent). Younger adults and lower-income households are the most likely to report financial strain and feeling stalled, the survey found. 'Canadians have not witnessed such economic uncertainty since the pandemic. We see some stability in financial perception, but many households feel like their lives are on hold, stuck in a financial holding pattern as they wait for the proverbial dust to settle,' said Grant Bazian, president of insolvency firm MNP, in a statement. 'Given the persistent economic pressures and backdrop of global volatility, many are hesitant to make major financial or life decisions, unsure of what lies ahead.' In response to mounting financial pressures, 41 per cent of Canadians have reduced discretionary spending, 33 per cent are increasing savings or building emergency funds, and 27 per cent are prioritizing debt repayment. Nearly one-quarter (23 per cent) are putting life goals on hold, such as buying a home, starting a family or changing careers. Canadians aged 18 to 34 are most likely to postpone these milestones. Over one-third of Canadians (41 per cent) fear that rising interest rates could drive them towards bankruptcy. And, even if rates were to decline, 45 per cent of Canadians remain concerned about their ability to repay debt. According to Bazian, approximately 14 million Canadians say they are close to insolvency. 'There are some persistent fears around interest rates,' he said. 'For some households, the damage has already been done. After years of rising costs, high interest rates and depleted savings, there may be some deep anxieties about what could still be to come.' Even economists are divided on what the Bank of Canada will do next, Yahoo Finance Canada previously reported. In June, economists at Royal Bank and Scotiabank forecast there will be no further rate cuts in 2025, while economists at BMO and Desjardins Group, alternatively, expect a further 75 basis points of cuts by the end of 2025 or early 2026, which would bring the BoC's overnight rate to two per cent. Amid ongoing uncertainty, more Canadians appear to be building financial buffers to safeguard against future economic disruptions. The average amount households have left at month-end has risen to $916, up from just $49 last quarter — the second-highest level since MNP began tracking this data in 2017. The largest increases were among Canadians aged 55 and older (up $84) and middle- to higher-income households. Those earning between $60,000 and $100,000 saw the biggest gains (up $260), followed by households earning over $100,000 (up $129). 'These are small but encouraging signs that some households may be regaining a bit of financial footing,' Bazian said. 'While challenges remain, any movement towards greater stability is meaningful in this environment.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
05-07-2025
- Business
- Globe and Mail
Prime Drink Group Announces Change of Auditor
MONTREAL, July 04, 2025 (GLOBE NEWSWIRE) -- Prime Drink Group Corp. (CSE: PRME) ('Prime') announces that it has changed its auditors from MNP LLP (" Former Auditor") to Horizon Assurance LLP (" Successor Auditor"). The Former Auditor resigned as the auditor of the Company on its own initiative effective June 25, 2025, and the board of directors of the Company appointed the Successor Auditor as the Company's auditor effective June 30, 2025, until the next Annual General Meeting of the Company. There were no reservations in the Former Auditor's audit reports for the relevant period, and any period subsequent to the most recently completed financial year for which an audit report was issued and preceding the resignation of the Former Auditor. In accordance with National Instrument 51-102 - Continuous Disclosure Obligations (" NI 51-102"), the Company has filed a Change of Auditor Notice on July 3, 2025 with respect to the resignation of the Former Auditor and the appointment of the Successor Auditor (the " Notice") on SEDAR+ together with letters from both the Former Auditor and Successor Auditor, with each letter confirming agreement with the statements contained in the respective Notices, as applicable. There were no reportable events as defined in NI 51-102 between the Former Auditor and the Company. FOR FURTHER INFORMATION PLEASE CONTACT:
