2023-08-05 04:00:00
The newspaper met young people who are worried about their financial future with the rising cost of everything. Inflation, housing crisis, debt: getting started in life is not easy for many young Quebecers.
With inflation and rising property prices, more and more young people fear that they will not be able to do better, financially, than their parents.
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“The belief that we will do better than our parents is no longer really relevant,” said Philippe Léger, head of the Youth 2023 study conducted by the Léger polling firm.
A crisis of the future: this is how he sums up the state of mind of Quebecers aged 15 to 39, 80% of whom are pessimistic about their economic, political and climatic future.
Another survey, this time conducted by TD Wealth Management, confirms that young Quebecers are considerably more concerned than their elders about almost all aspects of their personal finances.
Their priority: to save to build up a down payment, when those over 35 are more concerned about going on vacation.
Among the most affected by inflation
The people most affected by inflation are those who are “at the bottom of the ladder”, recalls Philippe Goulet Coulombe, professor of economics at UQAM.
Professor Philippe Goulet Coulombe PHOTO Laurence Hervieux-Gosselin / taken from Philippe Goulet Coulombe’s website
The younger generations therefore find themselves at the head of the pack among those who are struggling the most with price increases.
They have the lowest salaries, high current family expenses if they have children, and often little wealth.
They are also heavily indebted. The debt ratio of families whose main breadwinner is under 35 years old reaches 43.4%, against 14% on average in Quebec, according to Statistics Canada.
“It’s a bit of a carnage,” says Jennifer Robillard, executive director of the Coalition Interjeunes, which brings together many youth organizations.
More requests, more food aid needs, anxiety over not being able to find accommodation: the needs are great.
The newspaper also noted this through the numerous testimonies collected.
housing crisis
Even if inflation turns out to be temporary and young people benefit from a favorable job market, they still suffer lasting economic burdens, a sign that their concerns are not unfounded.
“Access to property has been dramatically restricted,” notes Mr. Goulet Coulombe. However, often, to leave in life, it is the first business.
By age 30 in 1981, nearly half of baby boomers owned a detached single-family home. In 2016, at the same age, barely a third of millennials were, according to Statistics Canada.
And the situation will certainly not improve, including for tenants, believes the professor.
The solution, which not everyone can access: get help from parents, stay at home longer or receive financial assistance.
Collective burden
Another economic burden for the younger generations: public finances.
“The demographic curve is intense in Quebec, recalls Mr. Goulet Coulombe. So yes, we’re going to have jobs, but you’re going to get fewer services and you’re going to get them for more.
For the economist, maintaining public services with an aging population risks costing young Quebecers dearly.
In numbers
19 500$
53 700$
174,5%
Debt-to-income ratio of Canadian households under 35 at the end of 2022 (Statistics Canada)
32,6%
12,7%
Increase in the number of tenant households in the Montreal region between 2011 and 2021
Home ownership rate among young Canadians (Statistics Canada)
2011: 44.1% (25-29 years old) 59.2% (30-34 years old) 2021: 36.5% (25-29 years old) 52.3% (30-34 years old)
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