Navigating Layoffs in Canada Amid the U.S. Trade War: A Comprehensive Guide

1. The Impact of the U.S. Trade War on Canadian Jobs

The U.S. trade war, particularly under President Donald Trump’s administration, has cast a shadow over the Canadian job market. With tariffs imposed on steel and aluminum, industries across Canada are feeling the pinch. Layoffs have begun, affecting companies like Ivaco and Canada Metal Processing Group, while many more workers fear for their job security. A recent poll revealed that 40% of Canadians are concerned about losing their jobs within the next year. This uncertainty underscores the need for preparedness and a clear understanding of the steps to take if laid off.

2. Immediate Steps Post-Layoff: Prioritizing Mental Health and Company Resources

Losing a job can be emotionally daunting, which is why prioritizing mental health is crucial. Experts advise taking a moment to breathe and focus on wellness before diving into practical steps. Mike Shekhtman suggests leveraging resources from your employer, such as outplacement services, to kickstart your job search. Ensuring you have an up-to-date Record of Employment is essential for applying for Employment Insurance (EI). Understanding your severance package is also vital, as it can provide financial support during this transition.

3. Understanding Severance Pay and Legal Considerations

Severance pay is a critical component of your layoff package, but it’s essential to know your rights. Employment lawyers recommend reviewing your severance agreement carefully, as employers may not always offer the full entitlement. Legal advice can help determine if you’re eligible for statutory or common-law severance, which varies based on employment length and position. Consulting a lawyer ensures you receive a fair package, which can range from a few weeks to several months of pay.

4. Navigating Employment Insurance and Financial Planning

After securing your severance, the next step is understanding how to apply for EI. However, timing is key, as EI benefits may be delayed if you’re receiving severance pay. Financial advisor Ilan Kibel emphasizes the importance of coordinating with government agencies to navigate these complexities. Managing finances wisely during this period is crucial, as neither severance nor EI may cover all living expenses, highlighting the need to explore new employment opportunities promptly.

5. Proactive Job Searching and Online Presence

Looking for a new job is a top priority post-layoff. Updating your LinkedIn profile and resume is essential to showcase your skills effectively. Networking through alumni groups and personal contacts can uncover hidden job opportunities. Mike Shekhtman suggests being proactive, especially in industries less affected by the trade war. Tailoring your job search to in-demand sectors and leveraging your network can enhance your chances of finding new employment.

6. Preparing for the Future: Proactive Measures for Those Still Employed

Even if you haven’t been laid off, it’s wise to be proactive. Evaluating your current job security and updating your resume can provide peace of mind. Building a contingency plan, whether through networking or skill enhancement, ensures readiness for any future changes. Taking these steps can reduce stress and position you as a competitive candidate in the job market.

By following these steps, Canadians can navigate the challenges posed by the U.S. trade war with resilience and preparedness.