This problem is brought to you by the letter K.
We are seeing something of an alphabet soup in the way economists and financial advisers are describing the state of personal finances for average Canadians as the COVID pandemic wears on.
The letter K is one to watch out for, they say. When the pandemic first hit, we saw a quick drop in everything from the stock market to incomes to GDP. But, it soon rebounded. That was a V when charted on a graph. There were also thoughts it might be a U – getting back to the same spot but slower.
And then K. This was where we saw a divergence at the bottom of the trough….some sectors went up and others down, hence the graph showing a line in the shape of a K.
And, based on a report from the debt team at accounting and consulting firm MNP, Generation Z – another letter – has been the hit the hardest by the pandemic as they lost out on summer employment in hospitality jobs. In fact, about 70-percent of young people say they are $200 away from insolvency
