Gen Z in trouble, as report shows income instability amid Canadian cost-of-living crisis

Data has shown that both work and living prospects for Gen Z Canadians are only getting worse.

A major report released by KOHO — a money management platform — has shown that, for the majority of young Canadians, the idea of fiancial growth in the current economy is a pipedream, as basic survival has taken precedence.

Based on a national survey, when asked about the current state of their wallets and expenses, 29 per cent of young Canadians indicated that their financial situation is in free fall, while 41 per cent indicated that they are just getting by.

Using a pool of 555 young Canadians aged 18 to 25, the report indicated further how finances are being managed as young Canadians desperately try to keep pace with a cost-of-living crisis, a plummeting housing market, and tariffs.

Core findings showed that income streams for Gen Z are “flat and uneven,” with the current monthly income standard sitting at just $1,083.

On top of this low standard, in May of this year, wages were $1,200, while in February, they were $1,009,  showcasing an unreliable pendulum of wages for young workers.

Adding to this pressure is the market itself, as youth unemployment affects the lower bracket of Gen Z, with the unemployment rate at 14.5 per cent, leaving many young Canadians unemployed.

KOHO’s data also showed that 19 per cent of Gen Z respondents are unemployed, which has left the remaining 41 per cent working full-time, citing that they will likely take on additional work to make ends meet in the future.

As for what the wallets of Gen Z are prioritizing, 71 per cent are only spending on essentials like food and rent and 55 per cent are trying to stay on top of their debt.

The report closes by stating that as long as this remains the status quo for Canada’s newest pool of spenders, money spent on things like investments, education, and travel will only dwindle as time goes on.