Recently, Fraser Institute ranked Canada as the sixth most miserable country in the world among 35 economically advanced countries based on Misery Index which is a measure of how an average citizen is doing economically.
Now, a new study from Angus Reid Institute says that two-in-five (39%) Canadians consider themselves worse off now than they were last year. According to the non-profit agency, this represents the largest group saying that they are struggling more than ever in Angus Reid Institute’s 13 years of tracking.
Credit: Angus Reid Institute
Three-in-five (57%) Canadians say that it is currently difficult to feed their household, says Angus Reid. This comes as Canada is experiencing the highest level of inflation seen in 30 years and high food prices. Food prices are anticipated to rise by five to seven per cent in 2022 according to Canada’s food price report.
Among provinces, while one-in-three residents of every region say they are worse off now than they were last year, those in Alberta (49%), Saskatchewan (47%), and Newfoundland and Labrador (47%) are most likely to say they are worse off now than they were last year. But, only 33% of Quebecers think they are worse off than before.
Credit: Angus Reid Institute
Angus Reid says drought (poor conditions in the agricultural sector) and a decrease in oil and gas production during the pandemic despite rising prices led more residents in Saskatchewan and Alberta to consider themselves financially faring worse this year. With an unemployment rate (11.6%) nearly double the national average (5.9%) in December, 47 per cent of residents of Newfoundland and Labrador think they are faring worse this year.
The study also finds that the increase in the cost of living has outpaced any income growth four-in-five Canadians (82%) have seen in their household.
One-quarter (25%) of Canadians also believe an increase in interest rates by the Bank of Canada would have a major negative impact on their household finances.
While those who have lower income are finding it difficult to make ends meet, Angus Reid says higher-income, low-debt households found that their position did not change or have improved over the past year.
The report titled, “Inflation Anxiety: More Canadians say they’re worse off now financially than any time since 2010” was based on an online survey from Jan. 7 – 12, 2022 among a representative randomized sample of 5,002 Canadian adults who are members of Angus Reid Forum.
The detailed report is available here.