COVID-19 Impacting Consumer Finances Similarly Around the World with Millennials Facing the Greatest Challenge; In Canada, G...
April 30 2020 - 7:01AM
The COVID-19 pandemic is causing similar financial hardship for
consumers around the world, but new research indicates that
Millennials (ages 26-40) are being challenged the most. A
just-released TransUnion (NYSE: TRU) global report including seven
regions on five continents found that three in four Millennials
(76%) indicated their household incomes have been negatively
impacted by the pandemic. This compares to 64% for all other
generations globally.
In Canada, Millennials also face great challenges
with 70% saying their household incomes have been negatively
impacted, compared to 55% for other generations. While
Millennials are still among the largest groups impacted by
COVID-19, Canadian Gen Z (ages 18-25) consumers face even greater
challenges with 75% who report being impacted.
In the weeks since the World Health Organization
(WHO) declared the coronavirus (COVID-19) a pandemic on March 11,
TransUnion has polled thousands of consumers in Canada, Colombia,
Hong Kong, India, South Africa, the U.K. and the U.S. to determine
the impact of the pandemic on their finances. Research for the
global report was conducted in mid-April and observed how COVID-19
has impacted millions of global consumers differently based on
employer size, generational differences, government interventions
and income dynamics.
“Similar to the rest of the world, COVID-19 has
brought about unprecedented financial challenges to people and
businesses across Canada,” said Matt Fabian, director of financial
services research and consulting for TransUnion Canada. “But we are
starting to see some encouraging data that suggests the combination
of financial relief measures and more time to plan are starting to
ease Canadians’ financial concerns, with a slight decline from 63%
to 59% reporting they have been negatively impacted financially in
the last week alone. While Gen Zs currently indicate they are
facing even greater hardships than Millennials in Canada, it may be
that we see a positive shift in the coming weeks with the
implementation of the new student relief measures.”
A clear outcome from the research is that many
consumers are feeling financial pain, but the Millennial generation
is under the most stress overall globally. In the seven regions
featured in the study, 22% of Millennials globally (29% in Canada)
with household incomes negatively impacted have lost their job due
to COVID-19 compared to 16% for all other generations (24% in
Canada). Just under half (45%) of Millennials globally with incomes
negatively impacted have seen their work hours reduced (36% in
Canada) compared to 35% for the rest of the group (28% in
Canada).
Millennials Facing Greatest Challenge
from COVID-19 Pandemic
Region/Generation |
Percent indicating their household incomes have been
negatively impacted |
Percent indicating they have lost their job due to COVID-19
(of those with negatively impacted incomes) |
Percent who have seen their work hours reduced (of those
with negatively impacted incomes) |
Millennials |
Other Generations |
Millennials |
Other Generations |
Millennials |
Other Generations |
World Composite* |
76% |
64% |
22% |
16% |
45% |
35% |
Canada |
70% |
55% |
29% |
24% |
36% |
28% |
*World composite includes U.S., Canada, Colombia,
Hong Kong, India, South Africa and U.K.
This stress is compounded by the fact that globally
61% of Millennials said they have dependent children living at home
– a much greater rate than the 39% noted for other generations. In
Canada, 43% of Millennials in the survey have dependent children
living at home compared to 35% for other generations.
Millennials who have seen their household incomes
negatively impacted also are having more pronounced problems with
certain debt obligations. For instance, globally 63% with
negatively impacted incomes report they will not be able to make
their rent or mortgage payment compared to 54% for other
generations. In Canada, 72% of impacted Millennials are unable to
pay for shelter compared to 56% for other generations.
Where do we go from here?
While the global report makes it clear that
consumers are struggling financially, the research suggests that
they are coping relatively well. For instance, five in six (85%)
global respondents said they have a plan to deal with their
financial gap regardless of generation. In Canada, 82% said they
have a plan.
“The biggest question on everyone’s mind is how
long this global pandemic will last – and what will be the impact
on the economy. Unfortunately, there is no crystal ball to predict
this. We continue to live in an unpreceded reality,” said Fabian.
“The good news is the research shows that people are resilient, and
most Canadians have a plan for how they will manage their finances
until economies re-open and employment opportunities return.”
Additional Canadian details from the report as well
as resources for consumers looking to minimize the potential
negative impact of the pandemic on their credit can be found on
TransUnion Canada’s COVID-19 website.
About the Global ReportTransUnion
surveyed 9,215 consumers in the U.S., Canada, Colombia, Hong Kong,
India, South Africa and the U.K during the week of April 13. In
addition to generational information, the global report provides
insight on the impact of the financial hardship caused by the
COVID-19 pandemic on other key factors such as employer size,
income dynamics and government interventions. This report is part
of TransUnion’s effort to make trust possible between businesses
and consumers by providing information and insights so that people
can transact confidently.
About TransUnion TransUnion
is a global information and insights company that makes trust
possible in the modern economy. We do this by providing a
comprehensive picture of each person so they can be reliably and
safely represented in the marketplace. As a result, businesses and
consumers can transact with confidence and achieve great things. We
call this Information for Good.® TransUnion provides solutions that
help create economic opportunity, great experiences and personal
empowerment for hundreds of millions of people in more than 30
countries. Our customers in Canada comprise some of the nation’s
largest banks and card issuers, and TransUnion is a major credit
reporting, fraud, and analytics solutions provider across the
finance, retail, telecommunications, utilities, and government and
insurance sectors.
For more information visit: www.transunion.ca
Contact |
Fiona
Bang |
E-mail |
Fiona.Bang@ketchum.com |
Telephone |
647-680-2885 |
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