Finance Canada
commissioned Environics Research Group to conduct qualitative and quantitative
public opinion research among Canadians in Fall 2022 and Winter 2023. The
research objectives were to explore Canadians’ overall concerns and perceptions
about the current state of the Canadian economy and emerging issues, and their
expectations about the role of the Government of Canada in the economy and in
other measure intended to improve quality of life for Canadians. Specifically,
this report analyses the results of the Winter 2023 research, showing current
attitudes among Canadians toward such topics as:
·
The state of the
economy;
· Inflation and the cost of living;
· Financial stressors;
· Fiscal issues, such as the deficit and taxation;
· Housing supply and affordability;
· Health care; and
· Budget priorities.
Qualitative Data Collection
Environics
Research conducted a series of 10 online focus groups in January and February
2023 to assess Canadians’ attitudes toward the current state of the economy. The
online focus groups were conducted using the Zoom platform. A pair of sessions,
one for higher income and the other for middle to lower income participants,
were conducted in each of the following regions: Ontario (January 30), Atlantic
Canada (January 31), Prairies (February 1), Quebec (February 2) and B.C. (February
6), The two Quebec sessions were conducted in French and the other eight sessions
were conducted in English.
The
71 participants were all 18 years of age or over, and included range of age, education,
and backgrounds. The groups
lasted approximately 90 minutes and consisted of between six and eight
participants (out of 8 people recruited for each group). Participants were
provided a $100 honorarium to encourage participation and thank them for their
time commitment.
Statement of
limitations: Qualitative
research provides insight into the range of opinions held within a population,
rather than the weights of the opinions held, as would be measured in a
quantitative study. The results of this type of research should be viewed as
indicative rather than projectable to the population.
Quantitative Data Collection
Environics
conducted an online survey with
a representative sample of 2,106 adult Canadians, conducted from January
11-23, 2023. As the online survey uses an opt-in panel, this is a
non-probability sample, and no margin of sampling error is calculated. The regional distribution of surveys is described
below.
|
Regional distribution
|
Total
|
BC/YK
|
AB/NWT
|
SK
|
MB/NU
|
ON
|
QC
|
ATL
|
|
# of completed surveys
|
2,106
|
333
|
286
|
112
|
129
|
624
|
419
|
203
|
|
% of completed surveys
|
100%
|
16%
|
14%
|
5%
|
6%
|
30%
|
20%
|
10%
|
This
report presents an executive summary of key findings, followed by detailed
analyses of the focus group data and the survey data. Provided under a separate
cover is a detailed set of “banner tables” presenting the results for all
questions by population segments as defined by region and demographics. These
tables are referenced by the survey question in the detailed analysis.
In
this report, quantitative results are expressed as percentages unless otherwise
noted. Results may not add to 100% due to rounding or multiple responses. Net
results cited in the text may not exactly match individual results shown in the
tables due to rounding.
The
contract value was $279,189.10 (HST included).
Use
of findings of the research.
By gauging and analysing the opinions of Canadians, the Government of Canada
gains insights into important policy areas related to the mandate of the
department and related services. The information gained through this public
opinion research will be shared throughout Finance Canada to assist it when
establishing priorities, developing policies, and planning programs and
services.
A.
Perceptions of Canada’s economy
In general, the focus
group participants had a negative and pessimistic view of the current state of
the Canadian economy. The most common top-of-mind words used to describe it
included critical words such as “struggling”, “inflation”, “challenging”,
“difficult”, “scary”, “tanking”, and “falling”. A minority used words that were
more neutral to describe the economy such as “average”, “okay”, and
“improving”.
Most agreed that Canada
is faring reasonably well compared to other countries and that inflation is
happening everywhere and is not a “made in Canada” problem. Other common
concerns raised were that wages have not kept up with inflation and that there
is a growing gap between the rich who have become richer in recent years, and
everyone else.
Most felt the economy
was in a bad state and were most concerned about issues that impact them
personally such issues as the cost of living, inflation, the lack of affordable
housing, and rising interest rates. Many made specific references to the cost
of groceries, housing, and to a lesser extent the price of gasoline.
Attitudes toward the economy were quite
consistent by region and income level, with participants feeling uncertain and pessimistic
about Canada’s current economic state and fearing another challenging,
unpredictable year, particularly due to external events such as the war in
Ukraine and commodity prices. Some participants from the Prairies had a more
neutral view of the economy and some felt that the worst was behind us and that
the economy may turn a corner in the coming year.
B. Inflation/cost
of living concerns
Inflation and the cost
of living were top-of-mind concerns for most participants and were also the
main way people gauged how well the economy is doing. Inflation and rising
costs seemed to be affecting all participants across all regions in some way. When
asked for examples of things that have become harder to afford, participants
pointed to groceries and housing as their main challenges.
Participants described
the steps they were taking to adapt to higher prices, such as shopping for
bargains and cutting discretionary expenditures. Higher income participants tended
to grudgingly pay more for things.
Most felt that that the
causes of the current inflation were multifactorial and were also a global
problem. The most common root causes of inflation cited were price
gouging/corporate greed, rising fuel prices, pandemic-related supply chain
issues and the war in Ukraine.
Most understood that
the Bank of Canada was responsible for setting interest rates and had heard
that interest rates were being raised to reduce inflation. But many questioned
the logic of this and did not understand how higher interest rates were
supposed to reduce prices, given the perceived global causes of inflation. Many
participants, especially those with mortgages, were starting to worry about the
impact of higher interest rates.
C. Affordability
measures
Most acknowledged that
there was little the federal government could do to reduce the inflation rate,
though some felt that tax cuts, especially to the carbon tax, could help
mitigate the impact of inflation.
Some also mentioned other
ways in which the government could help make life more affordable by having
more oversight, particularly around rent control and investigating price
gouging by large corporations.
D. Housing
concerns
Lack of affordable
housing was a major concern among participants across all regions, particularly
in British Columbia where housing prices have been an issue for many years.
Housing was not as much of a top-of-mind concern for participants from the
Prairies.
Specific housing concerns
varied depending on whether participants own or rent and whether they have a
mortgage to pay off. Renters were concerned about rising rents and renovictions
and the seeming impossibility of ever being able to afford to buy a property. Those
who currently own their homes were more concerned for their children and the
next generation, while those trying to enter the market for the first time were
stressed and felt like they could not get ahead due to rising costs and
interest rates. Those with mortgages were concerned about rising interest rates
and what would happen when their mortgages were up for renewal.
Most were unaware of
any measures the federal government has put in place to address housing
affordability. A few had heard about restrictions on foreign ownership and
speculation but were unsure if this was a federal or provincial measure.
E. Health
care
Health care was clearly
a major concern for most participants, and this was consistent across all
regions and income groups. The most common specific concerns related to the
lack of access to doctors, shortages of health professionals in general and wait
times for surgeries and procedures. Some specifically identified underfunding
as the underlying issue along with a perception that the health care system had
not yet recovered from the impact of the pandemic.
Most participants
agreed that the provinces were in the best position to address challenges in
their health care systems, given their jurisdictional responsibilities. But
they also felt that the federal government should ensure transparency and
accountability in spending. There was a
consensus that if the federal government were to provide the provinces with
more health care funding, they should have some say in how the money is spent
and be able to set some conditions and demand accountability.
To the extent that participants
looked to the federal government for solutions to the current crisis in health
care, they wanted to see federal action on facilitating the immigration of health
care professionals and more federal funding earmarked for health care.
Awareness of recent
announcements by such provinces as Ontario about privatizing the delivery of
some health care procedures was quite low. Most participants understood
privatization to mean having to pay out of pocket for health care and the idea
of increased private sector delivery was not well understood.
The higher income
participants were somewhat more open to this concept, while some lower income
participants and those in British Columbia were more concerned about the
ramifications of more private involvement in health care. There was a sentiment
that something had to be done about the perceived crisis in health care and
that maybe this was worth experimenting with, as long as standards of care were
consistent across public and private service providers and that all services
remained free of charge to individuals.
Some were hopeful that privatizing
some health care procedures might relieve stress on the public system. Others expressed
concerns that this might draw practitioners away from public health care and
would therefore do nothing to alleviate the underlying staffing problems. There
was no consensus on how the federal government should respond to these privatization
initiatives.
F. Budget
priorities
When asked about
desired top priorities for the upcoming federal budget, most participants focus
on health care. It was clear that this has become a top concern and therefore
people want to see it addressed in the next budget. Any measures that are seen
as helping remedy the shortage of doctors and nurses would be welcome. Mental
health was sometimes specifically mentioned, particularly among participants
from British Columbia. Some made specific mention of measures to expand the
scope of health care coverage such as dental care and pharmacare.
A minority of participants
mentioned some other desired budget priorities. Several mentioned measures to
address housing affordability. Other priorities mentioned less frequently included
lowering fuel costs but cutting carbon tax, more support for low-income
families, and more support postsecondary education.
It was notable that
climate change and environmental issues and deficit reduction were almost never
spontaneously mentioned as top priorities for the upcoming budget.
Two in ten (21%)
Canadians rate the current state of the Canadian economy as good (score of 7 to
10), identical to Fall 2022. One-third (33%) are neutral (score of 5 or 6), and
over four in in ten (44%) say it is bad (score of 1 to 4).
Only minorities of
Canadians in all regions rate their provincial economy positively (that is,
7-10 on a 10-point scale). Pluralities in most locations rate it as negative,
and in all cases but B.C., negative impressions have increased since Fall 2022.
Atlantic Canadians are the most negative (58%), while Quebecers remain the most
divided between feeling neutral (33%) or negative (37%) about their provincial
economy.
Canadians also remain
negative about the cost of various essentials. Just over eight in ten (83%, up from 79% in Fall 2022)
have a negative perception of the current cost of groceries, seven in ten (71%,
down slightly from 77%) are negative about the current price of gasoline, and
six in ten (62%) give a negative rating to the cost of utilities. New in this
wave, over half (54%) are negative about the price of auto insurance.
Over four in ten (44%,
basically unchanged from 43% in Fall 2022) say inflation/rising prices/cost of
living is their most concerning economic issue. Housing affordability remains a
distant second (13%, unchanged); one in ten (9%) mention rising interest rates.
B. Government action
As in the Fall, over
one-third (36%) believe it will take one to two years for the current period of
high inflation to get under control. Just under two in ten (17%) think it will
take a year or less, one-quarter (23%) think it will take more than two years,
and seven percent think high inflation is the new normal.
A plurality of
Canadians (38%) understands to some extent the inflation rate is caused by
global factors; just over two in ten (22%) think inflation is caused by policies
of the federal government. One-quarter (25%) think both global factors and the
policies of the federal government play a role.
In a new question in
Winter 2023, half of Canadians (50%) believe to some degree the Bank of Canada controls
the prime interest rate, one in ten (11%) incorrectly think the prime interest
rate is controlled by the elected federal government, and one in six (17%) feel
both equally set this rate.
When asked to rate the
importance of 14 issues for the federal government to consider when making
budget decisions, the most important are deemed to be improving the health care
system (87%) and bringing the cost of living (86%) and inflation (83%) under
control. These were all notable concerns in Fall 2022.
C. Financial
well-being
In Winter 2023, over
four in ten Canadians (44%, down 6 percentage points) give a positive rating
(score of 7-10) to their own personal financial situation; three in ten (31%)
give a neutral rating and one-quarter (24%) are negative to some extent.
The
top sources of major stress are the quality of the health care system
(34%), saving enough money to retire (26%) and rising interest rates (23%).
Around two in ten each also see as major stressors the middle class falling
behind the 1% (19%) and climate change (18%). The proportions indicating each
is a major stress are similar to Fall 2022.
Three in ten parents
say it is a major source of stress whether their kids will be able to afford a
place to live when they are older (30%) and what the quality of the environment
will be like for them (30%). Two
in ten or fewer are very stressed about the impact of other factors on their
children.
Just over one in ten
(12%) Canadians are at least somewhat more confident, half (49%) are just as
confident, and just over one-third (37%) are somewhat less (26%) or much less
(11%) confident they can manage paying their bills and buying the things they
need, compared to this time last year. These results are basically unchanged
from Fall 2022.
Three in ten in this
wave say groceries (31%, up from 24% in Fall 2022) are their most challenging
expense, and one-quarter (24%) say this about housing costs (unchanged). Just
under three in ten (28%, comparable to 29%) indicate they have no problems
making ends meet.
Canadians are slightly
more concerned about potential personal or family job loss than in the Fall; one-third
(34%) are extremely or somewhat worried, up from three in ten. Six in ten (61%)
are not very or not at all worried, with one-third being not at all worried,
down nine points.
D. Taxes
and fiscal policy
Close to two-thirds
(64%) agree there should be more permanent health care funding for the
provinces, and six in ten (60%) agree they worry that trying to balance the
federal budget too quickly may be done at the expense of essential services or
funded by higher taxes. Just under six in ten (58%) agree they don’t expect the
federal government to balance the budget until the economy has completely
recovered from the pandemic, while just under half (48%) agree they think the
budget should be balanced as soon as possible.
One-third agree the
federal government is trying to support Canadians in difficult economic times
(34%, down from 43% in Fall 2022) or that Canada should provide more financial
aid to help Ukraine (32%); and three in ten agree that it understands the
economic issues Canadians are facing (31%).
Eight in ten think
big corporations need to pay more in taxes, with half (49%) thinking they
should pay a lot more. Three-quarters (76%) think the top 1% of wage earners
should be paying more; and over half (54%) think they should be paying much
more than currently. Almost three-quarters (73%) think financial institutions
should be paying more (40% think it should be much more). In contrast, four in
ten think small businesses (41%) and middle-income earners (39%) are paying the
right amount of tax; four in ten think small businesses should be paying less,
and half think this of middle-income earners. Just over six in ten (62%) think
lower income earners should be paying less.
E. Housing
In a new question in
Winter 2023, Canadians were asked their impressions of the current interest
rates on loans and mortgages, and of the current cost of housing. Majorities
have a negative impression of the current cost of housing (76%), and current
interest rates on loans and mortgages (66%).
Eight
in ten (81%) continue to agree (that is, score 7 to 10) it is very difficult
for people to buy a house in the current economic climate; two-thirds (65%,
down from 71% in Fall 2022) agree the federal government has a responsibility
to address the lack of affordable housing in the country. Fewer homeowners in
this wave agree the cost of living in their home is affordable (47%, down from
53%), and fewer than four in ten renters (38%) agree the rent they pay is
affordable, comparable to the Fall. Only one-quarter (23%) agree it would be easy to find somewhere to live
that is both affordable and in a safe neighbourhood, if someone was buying a
house today. Three-quarters
(75%) of homeowners agree it was extremely important they own a home rather
than rent, and just over half of renters (53%) agree it is extremely important
they be able to own a home in the future.
Of 12 housing policies,
increasing the availability of affordable housing is identified as the top
priority (72%); around two-thirds each would prioritize cracking down on large landlords buying up
housing (68%), increasing transparency in real estate transactions (67%), supporting first-time buyers (66%), and
making monthly mortgage payments more affordable for middle- and lower-income
Canadians (64%). All of these levels of agreement are marginally lower than in
the Fall.
In a new question in
Winter 2023, Canadians were asked how much impact federal government policies
could have on the price of homes in Canada. Three-quarters (73%) feel these
policies could have at least some impact on the price of homes; three in ten
(30%) think the impact of these could be major. One in six (16%) feel these
could have little or no impact, and one in ten (11%) are unsure.
Also new in this wave, around
one-third each think addressing the lack of affordable housing in Canada is the
responsibility of the provincial (36%) or federal (32%) governments, while just
over one in ten (13%) think it is a municipal government responsibility.
I hereby certify as
senior officer of Environics that the deliverables fully comply with the
Government of Canada political neutrality requirements outlined in the
Communications Policy of the Government of Canada, and Procedures for Planning and
Contracting Public Opinion Research. Specifically, the deliverables do not
include information on electoral voting intentions, political party
preferences, standings with the electorate, or ratings of the performance of a
political party or its leaders.
Derek
Leebosh
Vice President, Public Affairs
Environics Research Group
derek.leebosh@environics.ca
(416) 820-1963
Supplier name: Environics Research Group
PWGSC
contract number: 60074-221039/001/CY
Original
contract date: 2022-09-06
For
more information, contact Finance Canada at por-rop@fin.gc.ca
