Harris & Partners analysis of 6,500+ survey responses reveals households were already cutting back and under stress
Canada's technical recession may have made headlines only recently, but new research suggests the financial pain was being felt in living rooms and kitchen tables long before the economists confirmed it.
Harris & Partners, reviewing findings from multiple nationwide surveys conducted throughout 2025 and 2026, found pervasive evidence of financial strain, changed behaviour and mounting anxiety stretching back well before Canada's economy officially contracted for a second consecutive quarter.
More than 112,000 jobs disappeared between January and April this year, pushing unemployment to 6.9% before a modest improvement in May. Young Canadians bore a disproportionate share of that pain, with youth unemployment running well above the national figure, intensifying debate around entry-level opportunities as Canada continues to recalibrate its temporary resident and foreign worker intake.
Compiled from responses by more than 6,500 Canadians, the research paints a picture of households already deep in adjustment mode.
More than 95% of respondents said rising costs had hit their finances, while 91% reported changing how they manage money in response to economic conditions. Around 88% had postponed or cancelled travel, major purchases or life goals, and 87% said they felt financially trapped by living expenses or debt. More than three-quarters said financial or job stress had damaged their mental health.
Joshua Harris, CEO of Harris & Partners and a Licensed Insolvency Trustee, said the surveys had been sending consistent signals for months.
"The technical recession may only have recently been confirmed, but many Canadians have been feeling the effects of economic uncertainty for some time,” he said. "Across multiple studies conducted over the last year, we've consistently seen the same themes emerge: rising costs, delayed plans, financial insecurity and growing stress about the future. For many households, the pressure has been building long before the economic data reflected it."
Reduced spending
Nearly half of those surveyed said they had cut back on spending, while more than one in five had deferred purchases outright. Others had drawn on savings or leaned more heavily on credit to cover routine expenses; a pattern Harris links to a deeper erosion of consumer confidence.
"When people start delaying major purchases, cancelling plans and changing how they manage money, it often reflects uncertainty about what lies ahead. Households become more cautious because they feel less confident about their financial stability."
"What we're seeing is not simply a response to higher prices. It's a response to uncertainty. People are worried about how quickly circumstances can change and whether their income will keep pace with the cost of living."
Younger Canadians
The toll on younger Canadians receives particular attention in the research. Harris pointed to a convergence of pressures, including a more competitive labour market, elevated housing costs and rising everyday expenses, creating conditions that could leave lasting financial marks on those just starting out.
"Many young people are trying to establish financial independence at a time when housing costs remain elevated, everyday expenses continue to rise and the labour market is becoming more competitive. Those pressures can have lasting financial consequences."
The wider human cost is also evident in the data. Nearly 58% of respondents said they had felt burned out or emotionally drained over the past 12 months. More than one in three had skipped meals or foregone other essentials to cover bills, while a similar proportion admitted using credit cards to pay for basics such as groceries, rent or household utilities.
"When financial pressure begins affecting people's mental health, relationships and day-to-day wellbeing, it becomes much more than an economic issue."
"Many Canadians have spent the last year making difficult decisions simply to stay on top of rising costs. The recession may be a new headline, but for many households, the financial strain behind it is already a familiar reality."
Harris & Partners is urging anyone facing financial difficulty to seek professional advice early, revisit household budgets and look into support options before debt reaches a critical point.
