Canada Loses 7,200 Jobs – How to Deal with Your Finances During a Job Loss
In March 2019, the Canadian economy lost 7,200 jobs, reported The Canadian Press. It was the first employment drop in seven months.
While employment rates have increased since, there is still some uncertainty in the labour market. For instance, recently the Near North District School Board issued notices to half of its secondary school teachers saying that if provincial grant funding isn’t received come August 31, they may not have a job in the fall.
In other industries, recent GM layoffs, have left current employees looking to next steps. And in the newspaper business, The Globe and Mail recently offered voluntary buyouts to its employees, hoping to cut $10 million annually from its operating budget.
Even when the national employment rate is doing well, job loss can still be overwhelming, particularly if you work in a specialized field. To that end, it’s important to be prepared.
- Take action immediately
When you receive notice that your job is no longer, it’s tempting to crawl into bed and hide from the world.
But there are steps that you can – and should – take immediately to find new employment more quickly and remain stable during the search.
- Know the terms of your employment package or buyout if it’s offered. Before accepting, look carefully at what you are agreeing to.
- Apply for employment insurance. If you are eligible, employment insurance (EI) can help you stay above water for the period following your layoff.
- Look at your savings. Know how much you have put away and how long it will last you.
- Ask for references. Depending on the circumstances, you may have been laid off due to budget cuts, restructuring, or similar reasons. In cases where there is no bad blood between you and your department, take the time before you leave to ask supervisors or colleagues for references during your job search.
See other resources for people who have lost their job: https://www.fullersolutions.ca/resources-for-people-who-have-lost-their-job/.
- Prepare to get back into the market
If it’s been a while since your last job search, you may need to take steps to get ready. This includes:
- Updating your resumé.
- Writing a cover letter.
- Searching for job openings.
- Asking friends and family for job opportunities.
- Thinking about what kind of career you actually want. This could be an opportunity to start your own business or train for a new path.
- Consider continuing education and second career programs
There are some industries where layoffs are happening across the board. For instance, with The Globe and Mail voluntary buyout program, it’s not just that one newspaper; this is just the latest instance of an industry-wide layoff.
In this case, you may not be able to find a job near you, requiring the same skills you were previous using. You would have to either consider re-locating, or training for a different job.
Certain areas of the country have different job needs. Look at your local colleges to see what courses they are offering — they are often tailored to your region’s requirements. Distance learning is also an option through accredited university and college programs.
The Government of Ontario also offers Second Career programs. Learn more at https://www.ontario.ca/page/second-career.
- Plan for your finances
One of the biggest and most obvious worries you might have after losing your job is money. Without an income – or a reduced income if you qualify for EI or receive a severance package — it can be a lot harder to manage your expenses. This is where a financial plan comes in.
- Look at your current income – be it from EI, a layoff package, your savings, a spouse, etc.
- Calculate how much you spend each month and what you spend it on.
- From there, determine what are must-haves and what are nice-to-haves. What expenses can you live without?
- When you have your list of necessities, consider if there is a way to decrease the amounts you spend on them. For instance, groceries are typically a must-have — can you reduce your grocery budget by buying generic or store-brand products instead?
- Deal with debt. Debt payments can eat up a huge chunk of your budget and ignoring them will only make it worse. Plan to deal with debt by contacting a financial advisor to see what your options are. At Fuller Financial Solutions, for example, we offer free consultations to go over potential debt solutions.
- Stay positive
Remember that job loss, while difficult, is often something you can’t control. It’s stressful and intimidating to be sure, but it’s important to maintain focus and take steps each day to bounce back, tackling even the hardest things.
If you’re struggling with a negative mindset or intrusive thoughts, consider talking to a trusted friend or family member or seeking counselling. You don’t have to go through job loss alone and you will find a way back into the market.
At Fuller Financial Solutions, we offer options to get back on track after a job loss that are tailored to the individual. We understand that each situation and person is unique, and we take those circumstances into account.
Contact us today for a free consultation. Call 416-927-7200 or visit www.fullersolutions.ca.