Report on ‘widespread crisis’ says Canadians working longer hours, without rise in pay — and still struggling to pay for basics
Canadians entered 2025 financially strained and ended the year in what a report is calling a “widespread crisis of resilience, well-being, and stability.”
Drawing on more than 12,000 survey responses gathered across multiple national studies, Harris & Partners says this was the year when everyday pressure turned into a systemic threat to well‑being and stability.
“This year’s data doesn’t just show stress; it shows a nation hitting its limit,” says Joshua Harris, CEO and licensed insolvency trustee at Harris & Partners.
Across demographics, the firm reports that Canadians worked longer hours, leaned harder on credit, and still struggled to pay for basics, with affordability pressures running well ahead of incomes throughout 2025.
“When you look across all 12 surveys, the message is unmistakable: Canadians are exhausted, financially overextended, and increasingly unsure how to stay afloat.”
Basic bills outpacing income
According to Harris & Partners, the core problem is stark: paycheques are no longer keeping up with the cost of day‑to‑day life. In a July survey within the Harris & Partners Index, 57.3% of respondents said their income did not fully cover essentials such as rent, food, and household bills.
By the fall, the same research found 88.9% of Canadians living paycheque to paycheque and 82.9% cutting back on basics, including heating and groceries.
“When the basics become unaffordable, financial resilience doesn’t just erode—it vanishes,” says Harris.
The firm notes that surging rents in major cities, higher heating costs through the colder months and food prices rising faster than wages all compounded the squeeze.
As affordability deteriorated, borrowing increasingly became a survival strategy rather than a choice, according to Harris & Partners.
The most acute danger point appears in the firm’s payday loan data. Among 569 payday loan users, 71.4% said they borrowed for essential expenses, 40.4% borrowed for emergencies, and 44% struggled to repay what they owed.
Burnout at work with extra effort
The Index suggests that the financial crunch is tightly linked to a growing burnout crisis, as 58% of Canadians said they felt emotionally burned out, while 52.6% reported their workload increased without a corresponding raise in pay.
The same data shows 21.4% took on extra responsibilities with no compensation and 14.7% worked unpaid overtime.
That pressure extended beyond primary jobs, as 45.1% of Canadians picked up a second job or gig work simply to stay afloat financially, according to Harris & Partners’ survey findings.
Mental health crisis in Canada
The Harris & Partners Financial Resilience Index also paints a stark picture of the emotional fallout from money worries:
- 60.4% of Canadians said they go to bed worrying about money
- 46% reported losing sleep because of financial pressures
- 68.4% said their debt makes them anxious.
That stress is often concealed. The same Harris & Partners data shows 56.6% of respondents hide their financial struggles from people close to them.
“We’ve entered a period where financial shame is as common as financial stress,” says Harris. “People feel embarrassed, or they don’t want to worry their spouse, or they think they should just ‘cope.’
