Gen Z Puts Financial Survival First Amid Unstable Economy and Volatile Job Market, New Report Finds

TORONTO--(BUSINESS WIRE)--Canada’s youngest working generation, Gen Z, is entering the workforce in one of the most uncertain periods in decades, marked by irregular paycheques, seasonal jobs, and skyrocketing living costs. KOHO, Canada's top-rated money management app, released The Canadian Gig and Seasonal Economy Trends Report, which found that survival is taking priority over growth when it comes to their finances. The report reveals that 41% describe their financial situation as somewhat stable, while 29% feel that their situation is unstable.

The report combines KOHO-owned data with a nationwide survey of 555 Canadians aged 18–25 who are KOHO users and reveals how young Canadians are managing volatile paycheques, limited day-to-day cash flow, and an increasing focus on survival over long-term financial growth.

The report released today finds that:

GEN Z INCOME IS FLAT AND WORK IS UNEVEN:

• Average monthly incomes held steady at $1,083, swinging 17.6% between a peak of $1,200 in May and a low of $1,009 in February.
• 41% of Gen Z are employed full-time, while nearly 1 in 5 (19%) are not working at all.
• Looking ahead, nearly half (49%) of Gen Z expect to take on more work in the next 12 months.
• Financial fragility is clear, with 29% feeling unstable and 41% feeling only somewhat stable.

SURVIVAL TAKES PRIORITY OVER GROWTH:

• Savings are up 23% year-over-year — but spendable cash remains just $9–$16 per month.
• Covering essentials (71%), building credit (55%), and paying down debt (54%) outweigh longer-term goals like investing, education savings, and travel.
• To manage income swings, 52% cut back on discretionary spending, 40% use products like KOHO Cover (overdraft protection) or Pay Later, and many borrow from family (28%), or delay bills (14%).
• Overdraft protection use rose to 40%, up 6.5 points year-over-year, while credit building tool adoption fell 8 points.

Gen Z Redefining Financial Resilience

The findings show a generation adjusting to constant financial ups and downs. Paycheques vary from month to month, savings are slowly building but not easy to access, and young people are prioritizing shorter-term financial stability over taking risks to get ahead.

“We’re seeing many young Canadians are learning to live with uncertainty, balancing unpredictable pay and rising costs while trying to make rent and buy groceries,” said Daniel Eberhard, CEO and Founder of KOHO. “Our report shows that they often have to focus on survival before worrying about longer-term goals. At KOHO, we’re building tools that help Canadians feel more comfortable today while helping Gen Z move towards building the confidence to take control of their money.”

KOHO offers tools to help Canadians manage the uncertainty of unpredictable income and build financial empowerment. With features like Cover (overdraft protection), automated savings, and credit-building options, KOHO provides flexible solutions that reflect the financial realities of Gen Z.

To learn more about KOHO’s financial tools and the full Canadian New Gig and Seasonal Economy Trends Report, please visit koho.ca.

About KOHO

Founded in 2014, KOHO is one of Canada’s leading financial technology companies, transforming the way Canadians spend and save. Through koho.ca and the KOHO app, users can access a spending and savings account with no hidden fees, along with tools like Cover (overdraft protection), Credit Building, and RoundUps. KOHO helps Canadians manage their money day-to-day, build financial empowerment, and work toward long-term stability. Headquartered in Toronto, KOHO serves users across Canada.

To learn more about KOHO, visit koho.ca. Read more on our blog here.

Methodology: These findings are from KOHO’s New Gig + Seasonal Economy Trends Report, which combines internal product data and survey research. KOHO-owned data reflects income inflows, savings balances, spending trends, and product adoption among Canadians aged 18–25 between July 2024 and July 2025. The survey was conducted in July 2025 among 555 Canadians aged 18–25, balanced across provinces. The survey achieved a 99.8% consent rate with full completion.