Majority of Gen Z Canadians Close to Insolvency Amid Coronavirus Pandemic, Poll Finds – National


Canadians experience the economic effects of COVID-19 very differently – and that largely depends on their vulnerability before the pandemic, suggests a new poll.The youngest in the workforce – those in Generation Z – seem to be struggling the most, according to the poll, which was commissioned by insolvency firm MNP.

Almost 70% are $ 200 or less from insolvency, which includes 39% who are already insolvent, meaning that their financial resources are not sufficient to cover their current obligations.

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Other groups hardest hit by the pandemic include renters – 57% who are in the same situation – about half of women and 67% of households earning less than $ 40,000.

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«TThe younger generation, those who still have student loans, Generation Z… the tenants, they are feeling the pinch, ”said Grant Bazian, President of MNP LTD.

Canada is starting to see a K-shaped recovery, Bazian said.

This is when the economy rebounds from a recession, but instead of uniform growth, different sectors and groups recover faster than others.

Young people, renters and low-income Canadians are not the only ones left out of the recovery. Throughout the pandemic, advocates and experts have also highlighted the disparate effects of COVID-19 on seniors, racialized Canadians and people with disabilities.

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The poll results come from the MNP Consumer Debt Index, a quarterly survey that takes the temperature of Canadians’ finances. The index is currently at its second-lowest score with 94 points (the lower the score, the more Canadians feel bad about their debt).

Overall, the poll found that just under half of Canadians are $ 200 or already insolvent.

That figure is up, having increased by four points since July, the last time the poll was released.

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Canadian bankruptcy and insolvency statistics suggest that billions in government grants rolled out this year save people from having to take such action – at least in the short term. In August, consumer deposits fell by more than 40 percent from the previous year.

Federal income support was recently extended for many people, and jobs are recovering. Canada added 378,000 jobs last month, a stronger result than economists expected, but still 720,000 jobs below pre-pandemic levels.

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Insolvency trustees across the country, however, are starting to hear more from struggling people, Bazian said. He also expects an increase in inquiries at tax time, as benefits like CERB are taxable.

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Her advice is to contact a professional to find out about the options before your finances hit a tipping point.

«Reveryone sooner – as soon as possible – will help people decide what to do when it gets really bad for them, ”he said.

The MNP Consumer Debt Index was compiled by Ipsos on behalf of MNP LTD between September 1 and 3, 2020. For this survey, a sample of 2,001 Canadian adults was interviewed. The weighting was then used to balance the demographics to ensure that the composition of the sample reflects that of the adult population according to census data. The accuracy of Ipsos online surveys is measured using a credibility interval. In this case, the poll is accurate to ± 2.5 percentage points, 19 times out of 20, if all Canadian adults had been polled.

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