Economic uncertainty, tariffs and trade tension, and the rise of AI have more Canadians worried about job mobility and career opportunities in the current labour market, according to the latest MNP Consumer Debt Index.
The survey found that 55% of Canadians are concerned these days.
The survey, conducted quarterly by Ipsos, found that 42% worry AI could negatively affect their employment or income and 54% say if they lose their job, they do not have enough savings to support themselves and/or their family for six months without borrowing or falling behind on bills.
“When Canadians are not confident they could replace their income if their job situation changed, carrying debt can feel much more precarious,” said Grant Bazian, president of MNP LTD, the country’s largest insolvency firm. “A job loss, reduction in hours or change in pay can quickly alter what a household can afford, particularly when there is not much room in the budget to absorb the change.”
More Canadians worrying about their jobs
Trade-related uncertainty is also evident, as nearly one-quarter (24%) of all Canadians worry tariffs, trade disputes or broader economic instability could negatively affect their job or income, increasing to more than one-quarter (27%) for working Canadians, said the report.
“One-third of working Canadians (32%) worry they would struggle to find a new job offering similar pay and benefits, while nearly one-quarter (23%) are concerned there are fewer opportunities available in their field or industry.
“These concerns are also reflected in workers’ willingness to make career moves. One-quarter (25%) of Canadian workers say they are reluctant to leave their current job because of uncertainty in the job market, one in five (19%) feel less secure in their job than they did a year ago, and one in five (20%) would like to change jobs but do not feel financially secure enough to risk a period of lower or no income.”
“Changing jobs can involve a period of uncertainty around pay, benefits or how quickly the next opportunity will come,” said Bazian. “For someone already managing debt, even a short gap in income can carry real financial consequences. It’s understandable that some people may be more hesitant to make a move when they are not confident they have the financial room to absorb that transition.”
Many Canadians on the brink of insolvency
While the overall Index has risen, MNP said confidence remains below historical levels.
Despite this improvement, 44% report they are on the brink of insolvency, meaning they are within $200 or less of being unable to meet their monthly financial obligations. Financial resilience also remains fragile when unexpected costs or disruptions arise: 36% are not confident in their ability to cope with loss of employment or changes in wage or seasonal work without increasing their debt, 34%, lack confidence in their ability to cope financially with an illness that prevents them from working for three months, while 29% are not confident they could manage an unexpected vehicle repair or replacement, explained MNP.
Canadians look for new ways to earn amid AI uncertainty
The report said 23% of Canadians cite concerns about the potential impact of AI on their careers, increasing to 27% for working Canadians and 14% say they are worried AI will make some of their skills less valuable, increasing to 17% for working Canadians.
“Roughly equal proportions of working Canadians are concerned AI could reduce their income, hours or earning potential (16%) or reduce job opportunities within their field (15%),” said the report.
“Alongside AI concerns and economic uncertainty, nearly half of Canadians (47%) say they have tried to earn additional income in some way, reflecting a broader ‘second-income economy’. The most common approach is selling goods online (21%) using platforms such as Facebook Marketplace, eBay, or Etsy, while one in 10 (11%) have learned new skills to improve future job prospects. About one in 10 have worked a second job (9%) or monetized a hobby, skill or passion project (9%), while eight percent have taken on freelance or contract work.”
MNP said younger generations are leading many of these efforts to supplement their income and strengthen their finances as 22% of Gen Z Canadians have learned new skills to enhance their career opportunities, while 34% of Millennials have sold goods online, compared with 21% of Canadians overall.
“AI is adding another source of uncertainty around how people work and what they may be able to earn in the future, while many Canadians are also looking for additional ways to bring in income,” said Bazian. “But there is a meaningful difference between earning extra money to get ahead and depending on it to keep up. If someone is taking on more work but their debt balances are not coming down, it may be worth looking at whether the overall debt load is manageable on their regular income.”
Debt pressure persists even as Canadians look for lower rates
Despite rate stability, with the Bank of Canada policy interest rate at 2.25%, many Canadians continue to feel financial pressure, noted the report, with 61% saying they desperately need interest rates to come down, and 51% worrying that they could face financial trouble if rates rise. The report noted that 43% say even if rates decline, they are concerned about their ability to repay debt and only 22% say they could absorb an additional $130 in monthly interest payments, while 35% say they could not.
“Lower interest rates would be welcome relief for many households, but they are not a cure-all for people already struggling with debt,” added Bazian. “The fact that four in 10 Canadians remain concerned about repaying their debt even if rates decline shows that, for many, the challenge goes beyond borrowing costs. Lower rates may help ease some pressure, but they may not be enough on their own to make an unmanageable debt load manageable.”
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