Financial Stress, Inequality Eroding Life Satisfaction in Canada: StatsCan
Inflation and rising costs are taking a toll on Canadians’ sense of well-being, with fewer than half now reporting high life satisfaction, according to a new Statistics Canada report. This is the first time since 2021 that the share of highly satisfied Canadians has fallen below 50 per cent, reflecting the growing financial strain on households across the country.
The report highlights a sharp increase in financial difficulties, with the proportion of Canadians struggling to meet day-to-day expenses rising from 18.6 per cent in 2021 to 32.8 per cent in 2024. While wage growth has offered some relief, Statistics Canada warns that income and wealth inequality is widening.
High-income households, buoyed by rising asset values and higher interest rates, have grown wealthier, while lower-income families, renters, and younger Canadians have seen their financial situations deteriorate.
Cumulative price increases since the onset of the COVID-19 pandemic have compounded affordability challenges, even as inflation has slowed. The Consumer Price Index (CPI) rose 17.1 per cent between January 2021 and October 2024, matching the total price increases of the previous decade. Essentials such as shelter, rent, and groceries have seen particularly sharp price hikes, severly impacting economically vulnerable groups.
Statistics Canada also points to an impending wealth transfer from baby boomers to their children, a factor they expect to exacerbate economic inequality. Meanwhile, nearly half of Canadians say rising prices are significantly affecting their daily expenses, up 12 percentage points from 2022.
“Older households and homeowners have remained resilient, but lone parent families, renters, and younger Canadians are increasingly struggling,” the report notes, adding that financial stress is closely linked to the ongoing decline in life satisfaction.
This analysis draws on Statistics Canada’s Distribution of Household Economic Accounts, the Survey of Financial Security, and the Canadian Social Survey.