{"id":159768,"date":"2025-11-29T14:38:04","date_gmt":"2025-11-29T14:38:04","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/159768\/"},"modified":"2025-11-29T14:38:04","modified_gmt":"2025-11-29T14:38:04","slug":"young-canadians-incomes-still-outpaced-by-inflation-report","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/159768\/","title":{"rendered":"Young Canadians\u2019 incomes still outpaced by inflation: report"},"content":{"rendered":"

\"\"<\/a>Source: Rawpixel<\/p>\n

Young Canadian households are seeing their incomes increase faster than any other age group since 2020, but the gains are meaningless as runaway inflation continues to erase their earnings.<\/p>\n

Young Canadians\u2019 wealth gains have been primarily driven by \u201can increase in financial assets, including cash deposits, and sizable growth in the value of their properties,\u201d according to a new Royal Bank of Canada report.<\/p>\n

However, despite many Canadians under 35 doubling their income over the last five years, their disposable income has shrunk due to inflation and increased labour market volatility.<\/p>\n

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Young Canadians are disproportionately employed by \u201cindustries that are vulnerable to economic shocks like retail, accommodation and food services.\u201d<\/p>\n

This cohort has also taken longer to find work, which contributes to \u201clabour market weakness for this age group,\u201d said RBC economist and report author Rachel Battaglia.<\/p>\n

\u201cThese headwinds have steepened the drop in the employment rate for young Canadians. The employment rate for those under-35 is set to drop 3 percentage points this year relative to 2020, indicating a falling share of young people earning employment income in Canada,\u201d Battaglia said Wednesday.<\/p>\n

Young workers account for nearly 40 per cent of the rise in Canada\u2019s unemployment rate, despite a large number of them being recent graduates unable to find work.<\/p>\n

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Additionally, much of the wealth younger Canadians built during the pandemic era was thanks to government aid, such as the Canada Emergency Response Benefit (CERB).<\/p>\n

While some bought a house during the COVID-19 pandemic, benefiting from rock-bottom interest rates, others chose to avoid mortgage debt altogether.<\/p>\n

\u201cBy postponing or forgoing homebuying due to affordability constraints, some young households avoid new mortgage debt, while those that own real estate retain pandemic-era price gains,\u201d reads the report<\/a>.<\/p>\n

\u201cThe disconnect between income and wealth for young Canadians raises important questions about their financial security as housing and equity markets normalize and the boost from earlier government support continues to dissipate.\u201d<\/p>\n

Growth in disposable income for young Canadians has been the lowest of any age group since 2020, increasing only 18 per cent. This keeps it 16 percentage points below those aged 45 to 55 and eight points below the national average.<\/p>\n

\u201cThis makes under-35s the only group where income growth has failed to keep pace with inflation,\u201d she said.<\/p>\n

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