A new nationwide survey has revealed that more than half of Canadians say their income is no longer enough to cover basic living costs — highlighting the growing strain on household budgets as inflation, housing costs, and daily essentials continue to rise.
The survey, conducted by Harris & Partners, a Licensed Insolvency Trustee firm, asked 1,731 Canadians about their financial wellbeing. Of the 1,655 respondents who answered the question on income adequacy 57.3% said their current income is not enough to cover essential expenses like rent, food, and bills.
Joshua Harris
“These numbers are deeply concerning,” said Joshua Harris, CEO of Harris & Partners.
“More than half of Canadians feel they’re falling behind financially — not because of bad choices, but because their income simply isn’t keeping up with the cost of living.”
From groceries to utilities, costs have risen steadily over the past two years, while many wages have remained flat. The result? A growing gap between what Canadians earn and what they need to get by, said the report.
“We’re not talking about luxuries here — we’re talking about the basics,” Harris explained.
“When working people can’t afford food, rent, or electricity on their current income, it’s clear something needs to change.”
The survey highlights that the struggle to meet basic needs is not isolated to one demographic — it spans age, profession, and region. Many are now forced to use credit for essentials or skip bills entirely, which can quickly lead to spiralling debt and mounting stress, said the company.
Harris warned that the growing financial gap is also fuelling anxiety, burnout, and poor mental health.
“When people feel like they’re working hard but still can’t make ends meet, it creates a sense of hopelessness,” he said.
“We’re seeing more Canadians reaching out for support not just because they’re in debt, but because they’re emotionally and mentally exhausted by trying to stay afloat.”
The firm is calling for stronger support systems — including clearer financial education, better access to professional advice, and a national conversation on wage adequacy.
“Canadians are doing their best. They’re budgeting, cutting back, and working harder than ever,” said Harris.
“But without structural change, individual effort can only go so far. We need to ensure that work pays enough to live — not just survive.”
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024 and 2025.
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