Financial struggles affecting Canadian workplaces

Our money woes are affecting our productivity at work, according to a new study — but it’s not what you think.

The latest survey from the National Payroll Institute points out Canadians are so distracted with their finances that it is impacting the economy.

The institute calls it “distraction subtraction,” finding we are spending a significant chunk of time each day dealing with our finances at work, and that is taking away from our productivity.

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The idea is that if we’re not focusing on work, we’re hurting the economy and that could lead to more economic turmoil.

The research reveals that will cost employers an estimated $40 billion this year alone.

“On average, a financially stressed worker spends nearly 30 minutes every day dealing with their financial situation — and not on business tasks at hand,” explains Peter Tzanetakis, President of the National Payroll Institute.

“Over the year, that’s over three weeks of lost productivity per employee.”

Meanwhile, a survey from Equifax finds more and more Canadians are using credit cards and credit lines to pay for goods and services.

So much so, the agency says usage is reaching historic highs, which could result in a slippery slope for many people struggling with persistent inflation and rising interest rates.

It also points out the average non-mortgage debt was more than $21,000 by the end of September — levels not seen since the first quarter of 2020 when the pandemic was just hitting and the economy was starting to shut down.