The National Payroll Institute has just unveiled the results of the 17th edition of its survey on the financial well-being of Canadian and Quebec workers. Good news: the financial stress level of workers across the country has decreased for the first time since 2021. Quebec and Ontario are the two provinces showing the lowest stress levels in the country.
Despite the gloomy economic climate, Canadians’ financial health is improving! This is what the 17th edition of the annual survey conducted by the Canadian Financial Wellness Lab, based at Western University, reveals.
Certainly, workers continue to fall into three clusters:
- those suffering from financial stress,
- those getting by,
- and those who are financially comfortable.
Nevertheless, the percentage of workers experiencing financial stress has dropped from 41% in 2024 to 36% in 2025. In Quebec, however, the proportion slightly increased from 28% in 2024 to 33% in 2025. This remains the lowest level in the country, tied with Ontario.
This overall decline comes after four consecutive years marked by worrying progression. At the same time, the percentage of financially comfortable workers increased from 28% to 30%.
Savings as the Main Explanation
How to interpret what may seem like a paradox? Apparently, it’s due to increased savings. Indeed, 51% of respondents indicated they tried to save more this year, compared to 42% in 2024. The proportion of respondents who managed to save at least $10,000 over the past year also increased from 23% to 29%.
“It’s possible that the increased savings rates we’re observing stem from the widespread media narrative that workers’ financial health is deteriorating,” declares Peter Tzanetakis, President and CEO of the National Payroll Institute. “Faced with uncertainty related to the rising cost of living and the consequences of tariffs on job security and the economy, saving appears as a way to prepare for upcoming challenges.”
In detail, more than a third (34%) of Quebec respondents indicate that mortgage or rent represents their main source of financial stress (the lowest in the country, with all other regions exceeding 40%), and 38% indicate that groceries are their main source of financial stress (lowest score tied with Ontario).
Generation Z Defies Stereotypes
Contrary to popular belief, the Institute’s survey reveals that Generation Z workers are holding strong and displaying financial behaviors that improve their financial well-being.
Thus, the percentage of Generation Z workers experiencing financial stress (37%) equals that of millennials (38%) and Generation X (37%), despite the latter groups being at their peak earning years.
Generation Z workers are also among the most likely to be in the financially comfortable cluster at 32%, just behind baby boomers and ahead of millennials and Generation X.
“These more positive numbers are the result of more proactive financial behaviors,” explains Adam Metzler, Lead Researcher at the Canadian Financial Wellness Lab and Associate Professor at Wilfrid Laurier University. “These workers have saved more than last year and are working to pay off their debts – two factors we know have a decisive impact on financial health.”
According to the Institute’s survey, Generation Z workers save an average of 11% of their salary, more than any other generation. Some 30% of Generation Z respondents estimate they saved at least $10,000 over the past year alone.
“Generation Z’s good savings habits may be due to the fact that they dedicate a smaller percentage of their income to housing,” adds Mr. Metzler. “For example, 44% of Generation X and millennial workers who responded to the survey dedicate more than 40% of their monthly income to housing, while only 35% of Generation Z workers do the same.”
The Impact of Financial Stress on Work
More than half of workers (51%) admit to spending at least 15 minutes per day thinking about their financial situation during work hours, which is significantly more than in 2024 (45%). This concern undeniably impacts their work.
Nearly one in four workers admits that stress related to their financial situation has affected their work performance. Financial stress also generates a whole series of problems, notably leading to decreased work motivation (47%), and leading 28% to report strained relationships at work.
“Faced with these unprecedented challenges, companies cannot afford to continue suffering the consequences of financial stress,” specifies Mr. Tzanetakis. “Every employer should consider improving workers’ financial health as a strategic priority.”
They recommend employers take the following measures:
- Encourage employees to automatically direct a portion of their salary to savings accounts
- Invest in payroll expertise to avoid delays, which can be particularly harmful to those already suffering from financial stress.
Methodology:
The National Payroll Institute surveyed 2,320 workers in Canada, 75% of whom were full-time employees. The survey was conducted online using a panel methodology by Framework Analytics Inc. between May 6, 2025, and May 20, 2025. The survey has a margin of error of plus or minus 2.0%, 19 times out of 20.
