Now it is the turn of young people who are caught up in inflation and rising interest rates. According to the Léger youth study, more than half of them now live from paycheck to paycheck.
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“The impact of the economic context is felt at all levels for Generation Z and Millennials,” note Gabrielle Blais and Charlotte Fortin, research directors at Léger.
Those who say they live paycheck to paycheck now make up 51% of the total, compared to 47% last year, for example.
The number of workers living paycheck to paycheck increased by 26% in 2022, according to results of the Canadian Laboratory’s National Institute of Payroll and Analysis’s annual financial well-being survey.
For its youth study, the Léger company surveyed more than 3,000 members of Generation Z – born after 1995 – and Millennials – born after 1984.
No more stress
The rising cost of living is putting a strain on the morale of people under 40.
62% of them feel helpless to address society’s problems (compared to 57% in 2022) and are also less confident that they can meet the challenges of their time (41% compared to 47% in 2022).
Rental costs are becoming a real problem every day. 72% say this expense takes up too much space in their budget, an increase of 8 percentage points compared to last year.
“An increase of 4 percentage points is already very significant in a survey like this. So when we talk about 8, we know we are addressing something,” explains Léger’s Ms. Fortin.
Among Millennials and younger “Gen Z,” 26% have moved in the last 12 months due to rising rent prices. This percentage was 17% in 2022, which is again “very significant”.
Fewer trips
But it’s not just about the rent or the mortgage. There are also the “little joys of life,” as Charlotte Fortin calls it, that endure her cold.
The rising cost of living has led young people to change their habits in various areas of spending.
67% of them are visiting restaurants and bars less, compared to 62% last year. They buy less clothing (67% compared to 58% in 2022) and spend less on sports and leisure (59% compared to 51% in 2022).
Three out of four young people are also saving less due to rising prices, namely 73% compared to 67% last year.
“We see increases everywhere, which leads us to believe that they have problems,” concludes Gabrielle Blais.
In addition to her eight business courses at CEGEP, Catherine Regimbal, 19, works 60 hours a week. Photo Francis Halin
Less fun
A trip from the Journal to the Cégep Édouard-Montpetit in Longueuil only confirmed the conclusions of Léger’s study.
Kassendra Hachey, 28, for example, just returned to study technology for children’s education because her job as a beneficiary caregiver didn’t pay enough to make a decent living.
Photo Francis Halin
“I live paycheck to paycheck. In addition to studying, I work every other weekend. I have to manage at least 24 hours straight to get there,” says the young woman.
With rents rising and groceries now costing a fortune, “it’s getting more and more expensive,” she says.
Catherine Regimbal, on the other hand, studied business administration at the age of 19 and works a good 60 hours a week in addition to three jobs.
“Last summer I had four jobs. I still have three jobs and am also taking eight courses at CEGEP,” she says.
After paying for car insurance and gas, she still can’t afford “luxuries like shopping or dining out.”
And even if she could, where would she find the time when she had to work three jobs and complete full-time education?
– In collaboration with Francis Halin
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