Nearly two-thirds of Canadians Say Household Income Negatively Impacted by COVID-19

TransUnion unveils research assessing pandemic’s effect on consumer finances

• Nearly two-thirds (64%) of Canadian household incomes surveyed negatively impacted by COVID-19, a 6% increase compared to the prior week
• Canadians financially affected indicate it was due to either a reduction in working hours (30%), losing their job (25%), or a partner losing his/her job or having reduced work hours (24%)
• Of those impacted, 67% continue to be concerned about their ability to pay bills and loans – down slightly from 70% the prior week
• Impacted Canadians said they will not be able to pay credit card debt (53%), followed by rent (42%), utilities (39%)
• 36% of surveyed Canadians are reaching out to lenders to discuss payment options

TORONTO, April 15, 2020 (GLOBE NEWSWIRE) -- TransUnion’s second weekly study looking at the impact of COVID-19 on consumer finances in Canada, reveals consumers continue to feel financially strained as a result of this pandemic, more so than the previous week. The survey of 1,035 adults conducted on the week commencing April 6, 2020, also found that recent measures announced by the federal government including the Canada Emergency Wage Subsidy and Canada Emergency Response Benefit is already positively impacting consumers' concerns around paying their bills.

“Our latest research clearly indicates that the COVID-19 pandemic is negatively impacting consumer financial concerns,” said Roman Mykhaylyshyn, Managing Director, Consumer Solutions, TransUnion Canada. “But at the same time, the data infers that recent government measures to provide financial support are already positively impacting Canadians’ anxiety about being able to pay their bill from just one week ago.”

Canadians consumers continue to be impacted financially
The research revealed that 64% of surveyed Canadian household incomes are being negatively impacted by COVID-19 overall. This represents a 6% increase compared to last week. The impact decreased for Gen Z (down from 82% in Week #1 to 73% in Week #2). This is in contrast to increases across Millennials (up from 67% in Week #1 to 76% in Week #2), Gen X (up from 53% in Week #1 to 67% in Week #2) and Baby Boomers (up from 43% in Week #1 to 50% in Week #2). Overall, Canadians who indicated they are financially affected by COVID-19 said it was due to either a reduction in working hours (30%), losing their job (25%) or a partner losing his/her job or having reduced work hours (24%). This is relatively unchanged from the week prior.