More than one in four Canadians lived in households struggling to meet basic financial needs in October, though the proportion has declined from pandemic-era highs, according to Statistics Canada data released today.
The agency found 27.7 per cent of Canadians aged 15 and older lived in households that found it difficult to meet financial needs for transportation, housing, food, clothing and other necessary expenses. While significant, this marks a continued downward trend from the peak of 35.5 per cent recorded in October 2022.
Renters face higher financial strain
Canadians living in rented dwellings experienced financial difficulties at substantially higher rates than homeowners. Among renters, 37.0 per cent reported struggling to meet financial needs, compared with 23.6 per cent of those living in owner-occupied homes.
Both groups showed improvement from a year earlier, with financial difficulty rates declining 2.2 percentage points among renters and 0.7 percentage points among homeowners.
Single parents report highest rates of financial hardship
Household composition played a significant role in financial strain among core-aged Canadians. Single parents aged 25 to 54 faced the highest rate of financial difficulty at 46.8 per cent, nearly double the rate for couples without children at 25.3 per cent.
Couples with children reported financial difficulties at a rate of 32.4 per cent, substantially higher than their childless counterparts.
Age patterns show working-age Canadians most affected
Youth aged 15 to 24 and core-aged workers reported similar rates of financial difficulty, at 31.0 per cent and 30.7 per cent respectively. Canadians aged 55 and older faced notably lower rates at 22.5 per cent.
Unemployment compounds financial challenges
Households with at least one unemployed person reported financial difficulties at a rate of 46.1 per cent, compared with 25.8 per cent for households with no unemployed members.
This pattern extended across Canada’s major metropolitan areas. Among the country’s 20 largest census metropolitan areas, Southern Ontario cities with above-average unemployment rates showed the highest proportions of households experiencing financial difficulties.
Oshawa led at 37.2 per cent, followed by Barrie at 33.7 per cent, Kitchener-Cambridge-Waterloo at 33.5 per cent, and Toronto at 32.3 per cent. All four cities had unemployment rates above the national average.
Regional variations reflect labour market conditions
Cities with lower unemployment rates reported the smallest proportions of households facing financial difficulties. Quebec City recorded the lowest rate at 20.0 per cent, followed by Montreal and Halifax, both at 23.6 per cent, and Victoria at 23.8 per cent. All four cities had unemployment rates below the national average.
