Rising inflation and financial stress impact Canadians' mental health and productivity, with 37% citing financial constraints as a health barrier
Dialogue, in partnership with Environics Research, published a report following Canada-wide surveys with Canadians and Human Resource (HR) professionals.
The research aims to understand workplace health and wellness and to measure changes in attitudes toward health and wellness over the past year.
Over the past few years, Canada has experienced significant financial changes due to rising inflation, with overall inflation surging by as much as 8 percent. Food and housing costs have increased steeply, affecting Canadians nationwide.
Multiple factors, including COVID-19, geopolitical issues, and supply chain constraints, have contributed to this trend. The Bank of Canada has raised interest rates to curb inflation.
However, a decline in productivity, a slowdown in the economy, rising prices, and increasing joblessness rates have resulted in high financial stress for Canadians.
Financial stress profoundly impacts Canadians' mental health, with nearly 28 percent experiencing symptoms that interfere with daily functioning, the highest rate since mid-2021. This mental strain affects work performance, with 27 percent reporting a decline in productivity due to their mental health.
Canadians widely acknowledge the importance of financial health in overall well-being. According to the surveys, 95 percent of Canadians and 92 percent of HR leaders agree that financial situations significantly impact personal well-being.
Many Canadians report worsening finances, with 1 in 4 saying their financial situation has declined in the past year. This impacts well-being, with 37 percent citing financial constraints as a barrier to prioritizing their health.
Employers can play a crucial role in addressing this by reevaluating employee benefits offerings to better support physical and mental health.
Major stressors such as the rising cost of living, unexpected expenses, daily expenses, lack of savings, debt, and low income significantly contribute to financial stress. Forty-three percent of Canadians lack the financial means to access professional mental health care.
Organizations can provide resources for immediate and long-term support, such as early intervention for stress and debt management and financial education.
Despite many employed Canadians wanting financial support through work, only 24 percent feel satisfied with their benefits plan for financial planning needs. While 62 percent of employers offer financial counselling services, most employees perceive them as inadequate or are unaware of them.
Employers can enhance support for financial well-being by integrating services such as financial counselling, virtual healthcare, and mental health support into their employee assistance programs.
Providing tools for better money management, addressing medical issues promptly, and supporting mental health early can help employees thrive both mentally and physically.
The surveys, conducted between February 1 and 16, included 1,602 Canadians and 86 HR professionals.
