Canadians are navigating a challenging economic landscape in 2025, with rising living costs, shifting job market dynamics, and global trade tensions shaping both their personal finances and investment decisions. According to a recent survey by Indeed Inc., the priorities of Canadian workers have become crystal clear: benefits that directly boost their financial security are top of mind, even as new work arrangements and economic anxieties swirl around them.
Indeed Inc.’s survey, conducted in August 2025, asked Canadians to rank their most valued workplace benefits. The results were telling: 46 percent of respondents listed health insurance and paid sick leave among their top five picks. An annual bonus was close behind at 41 percent, while 38 percent selected retirement savings plans, and just 5 percent chose dental insurance. The report concluded, “Canadians are looking for jobs that help them build the lives they want. With particular focus on maintaining a stable income amidst the difficult job market in the present or making decisions that support a strong retirement plan, stability and security are at the core of job decisions today.”
These preferences highlight the ongoing importance of traditional benefits over trendier perks. While flexible working hours were chosen by 32 percent of respondents as a top perk, only 8 percent expressed interest in working fewer hours overall. This contrast, the report noted, “suggests that employees are prioritizing autonomy to manage their own time over a blanket reduction in hours and may warrant further investigation into workload concerns, company culture and trust.”
It seems that, for most Canadians, the basics still matter most. Health, income, and retirement security are at the heart of their employment decisions, and these benefits are also powerful tools for retaining talent. Indeed’s survey found that 56 percent of employees cited their current benefit plan as a reason to stay in their job, while 55 percent admitted they would consider switching roles if a competitor offered a better package. The message for employers is clear: comprehensive benefits matter, perhaps now more than ever.
Despite the economic uncertainty that’s become a hallmark of the post-pandemic era, job satisfaction remains relatively high. Sixty-six percent of Canadians said they are satisfied with their jobs, and 46 percent haven’t even considered moving, even as the labor market shows signs of strain. Unemployment hit 6.9 percent in July 2025, a figure that’s stoking anxiety among workers. According to Statistics Canada, 7.7 percent of employees are worried they might lose their job within the next six months. The concern is especially acute among temporary workers (22.8 percent) and part-time staff (10.9 percent), who feel particularly vulnerable to potential cuts.
For small businesses, the economic climate is even more precarious. A Canadian Federation of Independent Business report revealed that one in five small businesses grappling with tariffs worry they won’t survive another six months if current conditions persist. Even more striking, 38 percent believe they wouldn’t last a year under the status quo. These findings underscore the ripple effects of global trade tensions and domestic policy choices, which have left many entrepreneurs feeling exposed.
Yet, in the face of these challenges, Canadians are still investing with an eye toward growth—sometimes in unexpected places. Despite a trade war that’s fueled a “Buy Canadian” movement, Canadian investors have poured an estimated $124 billion into U.S. stocks in 2025 alone. It’s a striking figure that bucks the rhetoric of economic nationalism. While the U.S. market has outperformed Canada’s for the past two years, the Toronto Stock Exchange’s S&P/TSX Composite Index has actually outpaced its American counterpart in 2025, climbing nearly 15 percent compared to a 10 percent gain in the S&P 500 Index. Clearly, investors are weighing returns over politics, even as they cheer on domestic industries from the sidelines.
This bullishness comes as Canada’s big banks, including Bank of Montreal and Bank of Nova Scotia, kick off their earnings season. These results are being closely watched by analysts and everyday Canadians alike, as banks are often viewed as bellwethers for the broader economy. There’s cautious optimism that banks will have set aside less money for bad loans in their third quarters, reflecting some resilience in the financial sector despite broader headwinds.
Meanwhile, economic data from south of the border is also being scrutinized for clues about what’s next. The latest U.S. housing price index for June and the second quarter, along with the U.S. Conference Board’s consumer confidence index, are among the key indicators on investors’ radar. These numbers provide important context for Canadians, whose financial fates are often tied to shifts in the American economy.
On the home front, the rising cost of living is pushing many older Canadians to consider reverse mortgages as a way to support their adult children. Reverse mortgages allow homeowners to tap into their home equity without making regular payments, offering a lifeline for families struggling with debt or stagnant wages. While this can provide immediate relief, some experts warn it may also reinforce problematic spending habits among younger generations. As one mortgage strategist noted, “Although wiping out someone’s debt can help, it also reinforces those bad spending habits.”
There’s no denying that Canadians are facing a complex set of financial choices in 2025. From weighing the pros and cons of workplace benefits to navigating volatile markets and supporting family members, the decisions are rarely straightforward. Yet, as the data shows, stability and security remain the guiding stars for most. Whether that means holding onto a job with solid benefits, investing across borders for the best returns, or leveraging home equity to help loved ones, Canadians are adapting in pragmatic, sometimes surprising ways.
As the year unfolds, all eyes will be on the interplay between economic policy, market forces, and the ever-shifting priorities of Canadian households. With uncertainty still in the air, one thing is for sure: Canadians are determined to build the lives they want, even if the path forward is anything but clear-cut.
