MNP Consumer Debt Index: Canadians Worry About Jobs and Income Amid Labour-Market Uncertainty and the Rise of AI, As Nearly Half Turn to ‘Second-Income Economy’

• More than half of working Canadians (55%) are worried about job mobility and opportunities, with that figure rising to 60% among working Gen Z and 59% among Millennials.
• Nearly half (47%) of Canadians say they have tried to earn additional income in some way, including selling goods online, learning new skills, working a second job, monetizing a hobby, or taking on freelance work.
• More than four in 10 Canadians (42%) worry artificial intelligence (AI) could negatively affect their employment or income, while more than half (54%) say if they lose their job, they do not have enough savings to support themselves or their family for six months without borrowing or falling behind on bills.
• More than one-quarter (27%) of working Canadians worry tariffs, trade disputes or broader economic instability could negatively affect their job or income.
  
  

CALGARY, Alberta, Oct. 05, 2026 (GLOBE NEWSWIRE) -- More than half of working Canadians (55%) are worried about job mobility and career opportunities in the current labour market, as economic uncertainty, tariffs and trade tensions, and the rise of AI reshape the outlook for jobs and income. According to the latest MNP Consumer Debt Index, conducted quarterly by Ipsos, more than four in 10 Canadians (42%) worry artificial intelligence (AI) could negatively affect their employment or income. Against that backdrop, more than half (54%) say if they lose their job, they do not have enough savings to support themselves and/or their family for six months without borrowing or falling behind on bills.

“When Canadians are not confident they could replace their income if their job situation changed, carrying debt can feel much more precarious,” says Grant Bazian, president of MNP LTD, the country’s largest insolvency firm. “A job loss, reduction in hours or change in pay can quickly alter what a household can afford, particularly when there is not much room in the budget to absorb the change.”

Staying Put: Income uncertainty raises the financial stakes of career moves

Trade-related uncertainty is also evident, as nearly one-quarter (24%) of all Canadians worry tariffs, trade disputes or broader economic instability could negatively affect their job or income, increasing to more than one-quarter (27%) for working Canadians.

One-third of working Canadians (32%) worry they would struggle to find a new job offering similar pay and benefits, while nearly one-quarter (23%) are concerned there are fewer opportunities available in their field or industry.

These concerns are also reflected in workers’ willingness to make career moves. One-quarter (25%) of Canadian workers say they are reluctant to leave their current job because of uncertainty in the job market, one in five (19%) feel less secure in their job than they did a year ago, and one in five (20%) would like to change jobs but do not feel financially secure enough to risk a period of lower or no income.

Concerns about job mobility and career opportunities are especially pronounced among younger generations: three in five working Gen Z Canadians (60%) and nearly three in five Millennials (59%) express concern about job mobility and career opportunities, compared with more than half of working Gen X (55%) and about one-quarter of Boomers (26%).

“Changing jobs can involve a period of uncertainty around pay, benefits or how quickly the next opportunity will come,” says Bazian. “For someone already managing debt, even a short gap in income can carry real financial consequences. It’s understandable that some people may be more hesitant to make a move when they are not confident they have the financial room to absorb that transition.”

The MNP Consumer Debt Index has risen four points to 95, though confidence remains below historical levels. Despite this improvement, more than two in five Canadians (44%, -2 pts) report they are on the brink of insolvency, meaning they are within $200 or less of being unable to meet their monthly financial obligations. Financial resilience also remains fragile when unexpected costs or disruptions arise: more than one-third (36%, +2 pts) are not confident in their ability to cope with loss of employment or changes in wage or seasonal work without increasing their debt. One-third (34%, +1 pt) lack confidence in their ability to cope financially with an illness that prevents them from working for three months, while three in 10 (29%, +1 pt) are not confident they could manage an unexpected vehicle repair or replacement.

The ‘Second-Income Economy’: Canadians look for new ways to earn amid AI uncertainty

Nearly one-quarter (23%) of Canadians cite concerns about the potential impact of AI on their careers, increasing to more than one-quarter (27%) for working Canadians. One in seven (14%) say they are worried AI will make some of their skills less valuable, increasing to nearly one in five (17%) for working Canadians. Roughly equal proportions of working Canadians are concerned AI could reduce their income, hours or earning potential (16%) or reduce job opportunities within their field (15%).

Alongside AI concerns and economic uncertainty, nearly half of Canadians (47%) say they have tried to earn additional income in some way, reflecting a broader ‘second-income economy’. The most common approach is selling goods online (21%) using platforms such as Facebook Marketplace, eBay, or Etsy, while one in 10 (11%) have learned new skills to improve future job prospects. About one in 10 have worked a second job (9%) or monetized a hobby, skill or passion project (9%), while eight percent have taken on freelance or contract work.

Younger generations are leading many of these efforts to supplement their income and strengthen their finances. More than one in five Gen Z Canadians (22%) have learned new skills to enhance their career opportunities, while one-third of Millennials (34%) have sold goods online, compared with one in five Canadians overall (21%). Gen Z is also more likely to report working a second job (16%), operating a side business (10%), monetizing a hobby or passion project (14%) or using AI tools to generate income (9%).

“AI is adding another source of uncertainty around how people work and what they may be able to earn in the future, while many Canadians are also looking for additional ways to bring in income,” says Bazian. “But there is a meaningful difference between earning extra money to get ahead and depending on it to keep up. If someone is taking on more work but their debt balances are not coming down, it may be worth looking at whether the overall debt load is manageable on their regular income.”

Debt pressure persists even as Canadians look for lower rates

Despite rate stability, with the Bank of Canada policy interest rate at 2.25%, many Canadians continue to feel financial pressure. Three in five (61%, -1 pt) say they desperately need interest rates to come down, and more than half (51%, -2 pts) worry they could face financial trouble if rates rise. More than four in 10 (43%, -2 pts) say even if rates decline, they are concerned about their ability to repay debt. Just one in five (22%, +1 pt) say they could absorb an additional $130 in monthly interest payments, while more than one-third (35%, unchanged) say they could not.

“Lower interest rates would be welcome relief for many households, but they are not a cure-all for people already struggling with debt,” says Bazian. “The fact that four in 10 Canadians remain concerned about repaying their debt even if rates decline shows that, for many, the challenge goes beyond borrowing costs. Lower rates may help ease some pressure, but they may not be enough on their own to make an unmanageable debt load manageable.”

With job and income uncertainty adding to the financial risks households may be weighing, Bazian says people carrying debt do not need to wait until they have missed payments to take a closer look at whether their situation is sustainable. Understanding how much is owed, what it costs to service that debt each month and how the household budget would hold up if income changed can help identify financial pressure before it becomes more difficult to manage.

A Licensed Insolvency Trustee can help review the full financial picture, including income, expenses and debts, and explain the debt-relief options available based on an individual’s circumstances. Speaking with a trustee does not mean someone has decided to file a consumer proposal or bankruptcy; it can simply provide a clearer understanding of what is manageable and what options are available.

“Debt problems do not always start with a missed payment,” says Bazian. “Someone may be making their payments every month but seeing little progress on what they owe. If the balances are not coming down despite consistent effort, getting a clear picture of the options can help determine what is realistic and what needs to change.”

Licensed Insolvency Trustees are federally regulated professionals who help individuals with debt problems make informed choices about their financial difficulties. They can evaluate an individual’s financial situation and explain the range of debt-relief options available, and are the only professionals authorized to administer government-regulated insolvency proceedings such as consumer proposals and bankruptcies.

MNP LTD offers free initial consultations for individuals who want to better understand their financial situation and debt-relief options. As the country’s largest insolvency firm, MNP LTD provides access to Licensed Insolvency Trustees through more than 200 offices across Canada.

About MNP LTD

MNP LTD, a division of the national accounting firm MNP LLP, is the largest insolvency practice in Canada. For more than 50 years, our experienced team of Licensed Insolvency Trustees and advisors have been working with individuals to help them recover from times of financial distress and regain control of their finances. With more than 240 offices from coast-to-coast, MNP helps thousands of Canadians each year who are struggling with an overwhelming amount of debt. Visit MNPdebt.ca to contact a Licensed Insolvency Trustee or use our free Do-it-Yourself (DIY) debt assessment tools. For regular, bite-sized insights about debt and personal finances, subscribe to the MNP 3-Minute Debt Break Podcast.

About the MNP Consumer Debt Index

The MNP Consumer Debt Index measures Canadians’ attitudes toward their consumer debt and gauges their ability to pay their bills, endure unexpected expenses, and absorb interest-rate fluctuations without approaching insolvency. Conducted by Ipsos and updated quarterly, the Index is an industry-leading barometer of financial pressure or relief among Canadians.

Now in its 38^th wave, the Index has risen four points to 95 points, though confidence remains below historical levels. Visit MNPdebt.ca/CDI to learn more.

The data was compiled by Ipsos on behalf of MNP LTD between September 1 and 8, 2026. For this survey, a sample of 2,001 Canadians aged 18 years and over was interviewed. Weighting was then employed to balance demographics to ensure that the sample's composition reflects that of the adult population according to Census data and to provide results intended to approximate the sample universe. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within ±2.7 percentage points, 19 times out of 20, had all Canadian adults been polled. The credibility interval will be wider among subsets of the population. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.

Provincial data is available upon request. 

CONTACT

Angela Joyce, Media Relations

p. 1.403.681.9286
e. angela.joyce@mnp.ca

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