Despite continued signs of an economic recovery, Canadian workers are not convinced the layoffs that began in 2009 are over with. In fact, fear over job losses is more prevalent now than it was just one month ago, according to a recent survey.

The RBC Canadian Consumer Outlook Index, based on the results of an online survey of 1,014 Canadians, finds that 26% of respondents admit to having a member of their household who is worried about losing their job. This represents an increase of five percentage points since a similar poll in December 2009, and is present in every province of the country.

The highest levels of anxiety appear in British Columbia (32%) and Alberta (31%), while the lowest levels were found in Manitoba and Saskatchewan (19%) and Atlantic Canada (18%).

However, the current pessimism is likely attributable to recent job numbers, and not the true state of the Canadian labour market, explains Craig Wright, senior vice-president and chief economist, RBC.

"While the jobless rate in Canada remained steady at 8.5% in December, 2,600 jobs were lost that month," he says. "Canadians were likely reacting to those numbers and expressing some insecurity. Nonetheless, over the course of 2010, we expect to see a sustained improvement in the labour market."

Debt weighs heavily
The Index also looked into the issue of personal debt and how Canadians are coping with it, and found that while B.C. and Maritime residents are fretting over their debt load, Quebecers are taking it all in stride.

Quebecers believe they will be debt free by the age of 54—three years earlier than the national average of 57—while two out of three British Columbians and Atlantic Canadians, are worried about their current debt level.

"It's interesting that such optimism arises despite more Quebecers experiencing job anxiety in January compared to December," says Micheline Martin, regional president, Quebec, RBC. "A solid financial plan and a savings account to cover living expenses for at least three months can help keep that anxiety in check and build a nest egg for the future."

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