Rising concern over income volatility for Canadians
One in 10 affected in Canada: study
About 3.3 million Canadians say they are dealing with income volatility to the extent their monthly income can fluctuate by 25 per cent or more, according to a study published Wednesday.
In what appears to be to a first in Canada, Toronto-Dominion Bank commissioned a survey to look at income volatility and how those subjected to it are more likely to face financial challenges and ultimately lack confidence in their financial future.
“What this survey actually does — all of us realize this is a problem — but this really focuses us on how big the problem is,” Bharat Masrani, chief executive of TD, said in an interview.
The survey found 37 per cent of adult Canadians — about 10 million — maintain they experienced moderate to high levels of income volatility over the past year. “The implications, not only for the individual but for our country are pretty profound,” Masrani said. “It’s a pervasive problem.” He said the solution will have to involve many stakeholders, but his bank has tried to advise the public on better ways it can manage finances to deal with the volatility.
Part of the solution, said Elizabeth Mulholland, chief executive of Prosper Canada, a national charity that encouraged TD to do the study, is to look at the very nature of work and solutions to adapt to that. “We need to look at what kind of policies and labour markets we are providing to people to help them manage and be resilient,” Mulholland said.
One thing we need to do is look at modernizing (employment insurance), modernizing our employment and income support programs. Employers also have to look at their own practices. Can we give employees more lead time about when they will be needed, how many shifts we will need them for.”
The online survey was conducted by Ipsos Canada from April 13-23, 2017, using a representative, national sample of 3,000 Canadians, 18 years or older. It is considered accurate 19 times out of 20, plus or minus two percentage points.