{"id":360765,"date":"2026-04-02T20:08:07","date_gmt":"2026-04-02T20:08:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/360765\/"},"modified":"2026-04-02T20:08:07","modified_gmt":"2026-04-02T20:08:07","slug":"four-ways-to-disaster-proof-your-finances-in-this-dreadful-labour-market","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/360765\/","title":{"rendered":"Four ways to disaster-proof your finances in this dreadful labour market"},"content":{"rendered":"

Open this photo in gallery:<\/a><\/p>\n

Today’s labour market is sluggish and uncertainty is high.diego_cervo\/iStockPhoto \/ Getty Images<\/p>\n

We are not, technically, in a recession. But for those who are out of a job right now, we might as well be. <\/p>\n

We are in what economists call a \u201clow-fire, low-hire\u201d labour market. Employers aren\u2019t axing jobs left and right as they would be in a true economic downturn. But growth is sluggish, and uncertainty \u2013 about anything from tariffs to the war against Iran and the future of energy prices and inflation \u2013 is high.<\/p>\n

As a result, many companies are in wait-and-see mode and in no mood to hire. For job seekers, it means that there are precious few openings out there. Those who become unemployed might be frozen out of the workforce for some time. <\/p>\n

If you are still gainfully employed, now\u2019s the time to stress test your emergency fund. Do you have enough that you would be able to stay afloat if you lost your job in this dreadful labour market?<\/p>\n

Here are four tips to help you disaster-proof your finances:<\/p>\n

Check how long it typically takes to get another job. Statistics Canada tracks the average duration of unemployment, which is a useful reality check. This page<\/a> shows that number currently sits at 24 weeks for those 25 and older. The general rule in personal finance is that you should have three to six months worth of living expenses socked away. In this economy, aim for the higher end of that range.<\/p>\n

If you\u2019re eligible for EI, see how long your unemployment benefits would last. That depends on the number of hours you\u2019ve worked in the past year and the state of the labour market in your area. The good news is that the government adjusts the maximum duration of benefits based on the local unemployment rate. The higher the local level of joblessness, the longer you can stay on EI. In Toronto, for example, the current maximum is 40 weeks. Here\u2019s<\/a> the page where you can look up your local maximum. <\/p>\n

If you qualify for EI, your emergency fund doesn\u2019t have to do as much heavy lifting. Think of it as funds that help you bridge any gap between your unemployment cheque and what you need to cover your monthly expenses, plus money that can keep you afloat for a few extra weeks once EI runs out. <\/p>\n

Consider keeping a separate slush fund for small emergencies. If you\u2019re only saving for six months of routine expenses, chances are your emergency fund won\u2019t actually last that long. Life is full of small, urgent, unexpected events: A trip to the mechanic, a leaky pipe, a surprise vet bill. These won\u2019t stop just because you\u2019re unemployed. To ensure your rainy-day fund lasts as long as you hope, it\u2019s important to build some contingency into it so you can afford to pay for the occasional unplanned costs without dipping into debt or shortening your financial runway.<\/p>\n

Set up a line of credit as a financial resource of last resort. If you don\u2019t already have a line of credit, now is the time to set one up. It will allow you to borrow at much lower rates than a credit card. That said, avoid taking on debt while you\u2019re out of a job, if at all possible. Your emergency fund should be the first line of defence. <\/p>\n

What\u2019s your strategy for disaster-proofing your finances? Let me know at: ealini@globeandmail.com<\/a> <\/p>\n

Subscribe to the On Money newsletter<\/p>\n

Are you reading this newsletter on the web or did someone forward the e-mail version to you? If so, you can sign up for On Money here<\/a>.<\/p>\n

Erica\u2019s personal finance reading list<\/p>\n

AI can code. But can it update a legacy website? (paywall)<\/a><\/p>\n

A fascinating article in The Economist about why artificial intelligence hasn\u2019t displaced India\u2019s IT workers yet. One reason? Bots may be able to create a new website in seconds but they aren\u2019t very good at modernizing old systems.<\/p>\n

Chart of the day<\/p>\n

At long last, more Canadians are waiting until 70 to start their CPP pensions<\/a>. <\/p>\n

Callout <\/p>\n

Are you a smart, cautious, tech-savvy consumer or investor? And did you lose money to a scam or hack anyways? We want to hear your story. <\/p>\n

The Globe and Mail is looking for people who have been targeted by fraudsters and who are willing to share their experience on the record, using their full name, for a story illustrating how just how sophisticated scams and hacks have become. Please email ealini@globeandmail.com<\/a> <\/p>\n

ICYMI<\/p>\n

Fuel price spikes, cheaper models prompt surge<\/a> in Canadian EV interest Polymarket is banned in Ontario. Flyers advertising it were handed out outside a Jays game anyway<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Open this photo in gallery: Today’s labour market is sluggish and uncertainty is high.diego_cervo\/iStockPhoto \/ Getty Images We…\n","protected":false},"author":2,"featured_media":72033,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[2571,138,246,54926,111,6042,139,69,54923,244,54929,54924,54927,54928,245,54925],"class_list":{"0":"post-360765","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-appwebview","9":"tag-business","10":"tag-finance","11":"tag-high-interest-saving","12":"tag-new-zealand","13":"tag-newsletter","14":"tag-newzealand","15":"tag-nz","16":"tag-onmoneynewsletter","17":"tag-personal-finance","18":"tag-personal-finance-advice-canada","19":"tag-personal-finance-canada","20":"tag-personal-finance-newsletter","21":"tag-personal-finance-planning","22":"tag-personalfinance","23":"tag-saving-strategy"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/360765","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=360765"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/360765\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/72033"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=360765"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=360765"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=360765"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}