THUNDER BAY – A recession can have major implications for the average Canadian family.
Abacus Data reports: The majority of Canadians aren’t confident about the economic big picture:
- 54% say the price of food will continue to rise over the next year.
- One in five Canadians have skipped a bill or paid less than minimum due for a bill in the last 4 to 6 weeks.
- A month into 2023 and half of Canadians have already reduced their savings (either drawing from savings, or reducing the amount added) this year.
- Among Canadians with investment savings, nearly half (43%) have reduced the risk profile of their investments or are considering doing so.
- If they lost their job tomorrow, 20% of Canadians would only be able to live for a week on their savings
A recession is an economic downturn that typically results in a decrease in economic activity, leading to higher unemployment and decreased wages. This can have a significant impact on families, as their incomes may be reduced or their expenses may rise, leaving them with less purchasing power and less money to cover basic expenses.
In addition, during a recession, businesses may reduce their investments in research and development, which can lead to a decrease in job opportunities for Canadians. This can lead to higher rates of unemployment, which may put additional strain on the average Canadian family.
The Canadian government has introduced measures to help families during a recession, such as increasing benefits and providing job retraining opportunities. However, these measures will not necessarily help everyone, especially those who are already facing financial hardship. It is important for Canadian families to consider the potential effects of a recession before making any major financial decisions.