Canadians Turn to Side Gigs Amid Job and Income Uncertainty

The latest MNP Consumer Debt Index reveals growing concerns among Canadians about job security and income stability amid labor-market uncertainty and the rise of artificial intelligence (AI). Over half of working Canadians (55%) are worried about job mobility and opportunities, with Gen Z and Millennials expressing even higher levels of anxiety at 60% and 59%, respectively.

Nearly half of Canadians (47%) have turned to the ‘second-income economy’ to supplement their earnings, through methods like selling goods online, learning new skills, or taking on freelance work. This trend is particularly prominent among younger generations, with 34% of Millennials selling goods online and 22% of Gen Z learning new skills to enhance their career prospects.

Financial resilience remains fragile, as more than one-third of Canadians (36%) lack confidence in their ability to cope with job loss or changes in income without increasing debt. Grant Bazian, president of MNP LTD, highlights that job loss or reduction in hours can quickly alter household affordability, especially for those managing debt. The MNP Consumer Debt Index has risen to 95, but confidence levels remain below historical averages.

Despite the Bank of Canada’s policy interest rate stability at 2.25%, financial pressure persists. Three in five Canadians (61%) desperately need lower interest rates, while more than half (51%) worry about financial trouble if rates rise. Bazian emphasizes that lower rates alone may not resolve debt challenges for many households.