Despite signs of continued economic recovery, for many families in Canada, income security is an elusive dream, suggests a report released Thursday by the Ottawa-based Vanier Institute of the Family.

The report finds many Canadian families struggling to balance persistently high debt loads against modest savings and often precarious income flow, and that “personal disposable incomes per household may slipped back to recession levels.”

Bank of Canada Governor Mark Carney has described family debt as “the greatest risk to the domestic economy.” For the 1.7 million Canadian families with a debt-service ratio of 40% or more, vulnerability to rising interest rates, consumer price increases or job loss is high.

Younger and older members of Canadian families, in particular, are struggling with the effects of the recession. Youth are finding it hard to get a toe-hold in today’s job market while workers aged 55 and older have garnered over half the net jobs created since the low point of the recession in 2009.

And yet, despite their increased labour market participation, the Institute notes a dramatic increase in the number of seniors declaring bankruptcy, an incredible 1,700% rise over the last 20 years.

Vanier Institute CEO Nora Spinks says, “More young people are living with their parents longer and staying in school longer. Grandparents are spending increasing amounts of time in the work force. Parents are stretched, often providing care and financial support to both young and old, while trying to plan and save for their own retirement.”

The report also notes that income inequality is growing in Canada. In real dollar terms, the increase in incomes for the richest 20% of families of two or more (+$39,000) from 1990 to 2009 was almost 50% bigger than the total annual income ($26,500) of the poorest 20% in 2009 and was almost equal to the total annual income ($46,200) of the lower-middle 20% of families.

The report also highlights the growing number of Canadians who include self-employment as a supplemental income source. In the 1990s, the number of Canadians using self-employment to supplement employment was statistically irrelevant, but that number has now grown to more than 350,000 people. For many others, more than one full-time or part-time job has become the norm.