decreased motivation (47%)
strained workplace relationships (28%)
increased absenteeism (33%).
However, the National Payroll Institute’s survey also found that the proportion of financially stressed workers has declined from 41% in 2024 to 36% in 2025, marking the first improvement after four consecutive years of worsening trends.
At the same time, the share of employees considered financially comfortable has risen from 28% to 30%, according to the report, which is based on a survey of 2,320 working Canadians in May.
Renewed focus on saving
The Institute attributes these gains to a renewed focus on saving, with 51% of survey respondents reporting they tried to save more this year, up from 42% in 2024. Additionally, 29% of Canadians managed to save $10,000 or more in the past year, compared to 23% the previous year.
“It may be that the increased rates of savings that we’re seeing are a byproduct of the same headlines that suggest the financial health of Canadians should be floundering,” says Peter Tzanetakis, president and CEO of the National Payroll Institute. “Filled with uncertainty rooted in the rising costs of living, and the impacts of tariffs on both job security and the economy, savings are one way that Canadians may be preparing for future challenges.”
The report also dispels negative stereotypes about Gen Z’s financial habits. It found that Gen Z workers are demonstrating proactive financial behaviours, such as saving more and focusing on debt repayment. Gen Z workers save an average of 11% of each paycheque—higher than any other generation—and 30% reported saving $10,000 or more in the past year. While only 26% of Gen Z respondents feel confident they will be able to afford a home in their desired area within five years, they are less likely than Gen X or Millennials to spend over 40% of their income on housing.