Canada’s youngest working generation is living in survival mode. A new Gig and Seasonal Economy Trends Report from KOHO, (1) Canada’s top-rated money app, finds that Gen Z is grappling with irregular work, rising costs and thin margins, while also adapting to a new kind of financial pragmatism.
The report combines KOHO’s internal data with a nationwide survey of 555 Canadians aged 18–25, offering a rare window into how young people are navigating volatile pay cycles and tightening budgets.
The results reveal a generation not driven by ambition alone, but by the day-to-day effort of making ends meet.
“As our data shows, Gen Z isn’t chasing side hustles for fun; they’re doing it to stay financially stable,” Faye Lucas, senior director of legal and customer trust at KOHO, told Money.ca. “With average monthly income around $1,083 and paycheques that can swing nearly 18% from month to month, extra shifts and gig work have become a core survival strategy.”
Irregular work and fragile footing
For many Gen Z Canadians, financial life has become a constant balancing act between pay instability and the rising cost of living.
The KOHO report found that the average monthly income among users in this age group sits at just over $1,000, fluctuating significantly throughout the year — a sign of how dependent many have become on part-time, seasonal and gig-based work.
Only 41% of respondents said they hold full-time jobs, while nearly one in five reported not working at all. Another 49% expect to take on more work in the next year, suggesting that even steady employment is failing to keep up with their financial needs.
That instability aligns with national data showing persistent challenges for young workers.
According to Statistics Canada, the youth unemployment rate climbed to 14.6% in July 2025, the highest since 2010 outside of the pandemic years. And while inflation has eased from its 2022 peak, prices for essentials such as rent, food and transportation continue to outpace wage growth.
Nearly three in 10 Gen Zers told KOHO they feel financially unstable, and another four in 10 describe their situation as only “somewhat stable.” The result, Lucas said, is that “every dollar has a purpose.”
“For Gen Z, the focus right now is stability: paying essentials, building credit and avoiding debt spirals,” Lucas said. “Once that baseline is secure, they can start planning for longer-term goals, but it’s hard to look ahead when you’re still trying to make it through the week.”
From credit building to cash flow management
In this environment, Gen Z’s definition of financial success has shifted from wealth accumulation to daily survival.
KOHO’s data shows that 71% of young users prioritize covering essentials such as rent and groceries, while long-term goals like investing or education savings have taken a back seat.
Surprisingly, according to the KOHO report, savings are actually rising — up 23% year-over-year — but liquidity is vanishing.
After expenses, most respondents reported having just $9 to $16 in spendable cash each month. “That disconnect is a direct reflection of financial survival mode,” said Lucas. “Gen Z is still prioritizing saving for their future, but finding tools to be able to save while maintaining the ability to afford everyday essentials is where digital tools become so important for this generation.”
To navigate these thin margins, Gen Z is turning to a mix of money tools and family support, rather than traditional credit.
Forty percent report using overdraft protection or “Pay Later” features to bridge shortfalls, while others rely on borrowing from family or delaying bills. At the same time, use of credit-building products has fallen by eight points year over year — a signal that longer-term credit management may be losing ground to more immediate cash-flow needs.
Lucas describes this shift as pragmatic, rather than reckless. “Gen Z has built a toolkit for volatility,” she said. “They’re using early-pay features, overdraft protection and automated savings tools to bridge income gaps without relying on high-interest credit.”
Survival now, stability later
KOHO’s findings highlight a generation redefining resilience. For many young Canadians, financial success doesn’t exactly mean owning a home or building an investment portfolio — at least not yet.
Instead it looks like paying bills on time, avoiding debt spirals and saving whatever’s possible.
“After rent, groceries, bills and transportation, having only $9 to $16 in spendable cash doesn’t mean overspending; it highlights how thin the margins are,” said Lucas. “What stands out is their determination to save something, even if it’s just a few dollars at a time.”
That mindset reflects the economic realities of gig-based work and the steep cost of independence.
If current trends persist, Gen Z’s habits could reshape how financial institutions design products and measure financial health, with the emphasis shifting from growth to endurance — and from planning for someday to surviving today.
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