Job security concerns grow among older Canadians, while younger Canadians remain the most anxious about layoffs
Younger Canadians continue to worry most about job security, but older individuals are increasingly sharing these concerns, as reported by Financial Post.
An ongoing financial outlook survey by Maru Public Opinion highlights this growing anxiety.
In June, the Maru Public Opinion’s Household Outlook Index found that one-third of people aged 18 to 34 fear job loss or layoffs. While this is a three-percentage-point drop from May, it remains higher than in March, when only one-quarter expressed such concerns.
For those aged 35 to 54, the percentage worried about layoffs rose five points to 15 percent.
Canada’s labour market has shifted dramatically since the post-pandemic period when employers struggled to find workers.
According to Statistics Canada, job vacancies, once at record highs, have returned to pre-pandemic levels. The unemployment rate increased to 6.4 percent in June, and long-term unemployment rose by about four percentage points from a year ago.
The Bank of Canada’s latest Business Outlook Survey indicates that 40 percent of employers do not plan to hire additional workers. The Canadian Survey of Consumer Expectations shows that 50 percent of people now find it harder to secure a job in their field, up from 38 percent in the previous survey.
Despite these trends, widespread layoffs are not anticipated. Economists attribute the shifting employment market to record immigration levels, which have added about one million people to the workforce.
John Wright, executive vice-president of Maru Public Opinion, noted, “That creates a different kind of anxiety. You can be replaced pretty easily.”
Reflecting a more uncertain employment outlook, 42 percent of Gen-Zers (aged 18 to 27) plan to move to smaller residences to save money, and nearly half require government assistance to “make ends meet.”
Despite job stability concerns, younger Canadians show more optimism about the economy than those aged 35 to 54. For instance, 41 percent of the 18-to-34 group believe their local economy will improve over the next 60 days, compared to 34 percent of the 35-to-54 group.
Nationally, 43 percent of the younger group are optimistic, while only 32 percent of older Canadians share this view.
The Household Outlook Index, bolstered by younger Canadians, registered 86, up one point from the previous reading. An index score below 100 indicates negative sentiment, while a score above 100 suggests optimism.
The index has been negative since December 2021, hitting its lowest point of 83 in March 2023. Wright noted, “Digging deeper, it becomes apparent that it’s primarily a slice of the Gen Z (aged 18 to 27) population who are the mighty ones lifting the index up on their shoulders.”
More younger Canadians report an improved financial position, with nearly half considering purchasing big-ticket items like cars or furniture in the coming months.
Wright added, “This group is tied into the new economy and living a great life. They are optimists. We found them in the States and Europe. For groups of Gen Z, they are into AI, they are entrepreneurs. A slice of them is very different from the rest of the world.”
