Lost productivity hits $74.3 billion while only 23 percent get a payroll savings plan
Financial stress is costing employers and the Canadian economy an estimated $74.3bn in lost productivity, and 44 percent of working Canadians now fall into the financially stressed category.
According to the National Payroll Institute's 2026 Annual Survey of Working Canadians, the financially stressed group has grown from roughly one-third of workers historically to nearly one-half, and now stands at more than double the size of the financially comfortable segment, the Institute said in the release.
More than one in four employed Canadians, 28 percent, are living paycheque to paycheque and would struggle to meet their financial obligations if their paycheque were delayed by one week.
That figure climbed from 24 percent a year earlier to its highest level in five years.
Groceries and household products rank as the largest source of financial stress, cited by 55 percent of respondents, while 46 percent say they are worried about personal debt.
The share of Canadians trying to save more has fallen from 51 percent to 43 percent and only 31 percent report making progress increasing their savings.
Half of employed Canadians now spend all or more of their net pay, up from 41 percent in 2025.
Peter Tzanetakis, president and CEO of the National Payroll Institute, said in the release that financial stress is now a persistent condition rather than "a warning light on the dashboard" for a growing number of working Canadians.
He said people spending everything they earn, relying on debt to bridge the gap and unable to build savings can feel they are losing control after even a small disruption.
Nearly one in four employed Canadians say personal financial stress is affecting their performance at work, a figure that rises to 53 percent among financially stressed workers.
Nearly one-third spend more than 30 minutes per workday dealing with, or thinking about, personal finances.
The Institute said the effects show up as lower motivation, reduced productivity, personal or sick days, and strained workplace interactions, with costs often further realized in employee benefits and assistance programs.
Forty-five percent report feelings of anxiety or depression connected to financial stress, and 38 percent report loss of sleep and difficulty concentrating.
Only 23 percent of respondents have access to a Pay Yourself First program, under which a set amount is directed into savings from each paycheque before the remaining pay is received.
Where such a program is offered, 78 percent participate, and 48 percent say they would value an employer-sponsored emergency savings program.
Tzanetakis said in the release that employers have an opportunity to help workers "regain control" before the strain worsens.
He said financial wellness support "should not be viewed as a nice-to-have."
The survey found 37 percent of working Canadians are carrying more debt than in previous years, with 42 percent saying debt is affecting their ability to save.
Only 18 percent believe their income increases are keeping pace with the rising cost of living.
