The financial health of working Canadians may finally be improving after years of decline, according to a new survey by the National Payroll Institute.
The survey, which polled more than 2,320 employees, found the proportion of workers who described themselves as financially stressed has decreased from 41 per cent in 2024 to 36 per cent in 2025, while the share of employees who said they’re financially comfortable increased from 28 per cent to 30 per cent.
Half (51 per cent) said they’re trying to save more this year, up from 42 per cent in 2024. The share of Canadians who managed to save $10,000 or more in the past year also rose to 29 per cent from 23 per cent.
“It may be that the increased rates of savings that we’re seeing are a byproduct of the same headlines that suggest the financial health of Canadians should be floundering,” said Peter Tzanetakis, president and chief executive officer of the National Payroll Institute, in a press release. “Filled with uncertainty rooted in the rising costs of living and the impacts of tariffs on both job security and the economy, savings are one way that Canadians may be preparing for future challenges.”
Notably, the survey found generation Z workers are holding their own and demonstrating proactive financial behaviours proven to improve financial wellness, despite prevailing attitudes about younger workers’ financial state.
A third (32 per cent) of gen Z employees said they’re financially comfortable and save, on average, 11 per cent of each paycheque, higher than any other generation. A similar percentage (30 per cent) said they’ve saved $10,000 or more in the past year.
While two-fifths (37 per cent) of gen-Zers described themselves as financially stressed, the survey found similar percentages of millennials (38 per cent) and generation X (37 per cent) workers who said the same.
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Despite these improvements, businesses continue to see financial stress impacting their bottom line. Half (51 per cent) of workers admit to spending at least 15 minutes per day thinking about their finances on the job, a notable increase from 2024 (45 per cent), while six per cent now spend more than 90 minutes per day worrying about their finances. Nearly one in four said stress related to personal finances has impacted their workplace performance.
The result is $69.5 billion in lost productivity annually — an increase of $15.6 billion from 2024 and $42.6 billion since 2021, when lost productivity stood at $26.9 billion.
In addition, the survey noted financial stress is also tied to a host of workplace challenges, including decreased motivation (47 per cent), strained relationships at work (28 per cent) and causing workers to take time off (33 per cent).
“Faced with unprecedented challenges, the cost of financial stress is one that Canadian businesses simply can’t afford to continue paying,” said Tzanetakis. “Focusing on improving the financial health of workers is something every employer should consider a strategic priority.”
Read: How employers can design effective financial wellness programs