2017 has been the year of job loss; several major companies across Canada have announced their plans to lay off hundreds, if not thousands, of employee and Loblaw Companies Inc. is one of those.
Loblaw Companies Inc. announced in October that they were laying off 500 office workers. Many of the positions were terminated immediately.
The company cited a changing business strategy as the reasons for the layoff, though some have speculated the job loss may be caused by the upcoming increase in the minimum wage. On January 1, 2018, Ontario’s minimum wage went up from $11.60 to $14 per hour, and it is expected to increase to $15 per hour by 2019. It is possible other companies will follow in Loblaw’s footsteps and also cut jobs, especially as automation progresses. If your job security could be at stake, do you know what you would do?
If you are facing job loss or even concerned about the possibility it is best to be proactive with getting your finances in order and having a back-up plan.
Step 1: Take Stock of Your Reality
- What is your current financial situation?
- How much of your household budget are you responsible for?
- How much debt do you carry?
- What other streams of income do you have, if any?
- How much do you spend each month? What does your money go towards?
Step 2: Assess Your Options
- If you were laid off, how long could you survive on your savings for?
- What types of compensation packages would you qualify for? Would you be eligible for any government assistance if you weren’t able to find something else right away?
- If you were forced to change jobs, where could you apply? Would you need to stay in your specific industry or would you be able to look elsewhere? Do you need to stay in the area you’re living or are you able to move if necessary?
Step 3: Prepare!
- If you don’t already have a personal budget, now is the time to start one. You need to know exactly how much you spend each month and what expenses could be cut or trimmed back.
- Start looking at what other job possibilities might be out there. Reach out to connections and dust off your resumé.
- Talk to a financial consultant to take stock of your financial situation. If you are facing a layoff, it is critical to have a plan for managing your debt. Not doing so can cause even more financial and emotional distress for you — especially if creditors start calling. Additionally, not making your payments on time will affect your credit report, and a poor credit score could impact your job search.
If you’re facing job loss or worried about job security, Spergel can help you assess your financial situation to make sure you’re prepared no matter what happens.
Call today for a free consultation: 310-4321.