More than half of Canadians said that their household income has been negatively impacted by the COVID-19 pandemic, according to research from TransUnion.
The credit reporting agency surveyed 1,064 adults to understand the financial impact of the COVID-19 pandemic on consumers. According to the survey, almost three out of five Canadians (57%) said their household income has been reduced because of the economic fallout of the pandemic. Additionally, 10% of Canadian adults said they expect their household income will suffer in the future.
And on average, Canadian respondents said they will be short about $935 in the near future.
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“Whether it’s their health, financial well-being or changes in day-to-day living, the lives of millions of people in Canada and abroad have been dramatically changed,” said Todd Skinner, regional president for Canada, Latin America, and Caribbean at TransUnion. “The aim of our weekly consumer research is to better understand the financial impact of the COVID-19 pandemic and better inform consumers, businesses, and government decisions during these unprecedented times.”
Broken down by generations, the survey found that the youngest generations – particularly millennials (those born 1980 to 1994) and Gen Z (born from 1995 onwards) – felt most impacted financially by the COVID-19 pandemic. And while 70% of consumers who have had their household income impacted by COVID-19 are concerned about paying their bills, this increased to 78% for Millennials and 74% for Gen Z.
“Our focus is on supporting Canadian consumers, businesses and the wider economy as a whole,” said Skinner. “Consumers are facing many unexpected challenges and it’s natural that people are concerned about their finances. [Therefore], it’s really important that there is a dialogue between businesses and their customers at this time of uncertainty.”