4 ways to manage your money after a job loss

With files from Bridget Casey.

When the economy takes a turn for the worse – like it has in Canada recently – companies will usually resort to cutting jobs. Statistics Canada’s latest Labour Force Survey reported that the nation’s unemployment rate stands at 6.9% in June 2025 – a decrease of only by -0.1% from an all-time high of 7.0% since September 2016 (excluding 2020 and 2021, during the COVID-19 pandemic). 

In addition, long-term unemployment – defined as being unemployed for 27 weeks or more – increased to 21.8%, or more than one in five of unemployed people.

If you’re the victim of a layoff, you might wonder how you’ll be able to make ends meet.

While it’s normal to feel panic, now might actually be a great time for a financial makeover to reinforce any vulnerabilities in your budget. While you update your resume and reach out to your networks to secure a new job, here are four key money moves to manage your finances after a layoff or other job loss:

1. Apply for unemployment benefits

If you’ve been paying into employment insurance (EI) like most employees, now is the time to use your benefits. You should apply for EI benefits as soon as you stop working, as the funds will help provide financial security as you search for new employment.

You can receive up to 55% of your average insurable weekly earnings for 14 to 45 weeks from the day you lose your job. Note that 55% is the maximum, and you may receive less than that.

2. Cut your expenses 

The best way to weather tough times is to drastically reduce non-essential spending right now, not later. My partner and I have a “bare-bones budget”, which is a breakdown of all our essential bills and financial obligations that must be paid no matter what. These include things like the mortgage, utilities, and groceries, but not luxuries like dining out or streaming subscriptions. If either of us were to ever lose our jobs, this is the budget we would immediately put into practice – and it helps us determine if we have enough of an emergency fund (a good practice is to keep six months’ worth of essential expenses in a high-interest savings account.) 

This is also a good time to try and look for savings in your essential services. For instance, you can contact your Internet and mobile providers and request to switch to a cheaper plan, or move to a competitor with cheaper prices. You can even call your insurance company and ask for ways to reduce your premiums.

3. Maintain your investments

If you’ve been allocating money to investments in your budget, you can hit pause until you secure a new job – but it’s best not to tap into your investment portfolio unless you reach a point where you need the money to pay off high-interest debt. 

If you have a GIC that’s reached maturity, for instance, you may choose to withdraw the full sum and use it to help pay your expenses while you search for a new job. However, if you hold stocks, you won’t want to sell them if they’re currently making a loss or if they’re regularly paying out dividends that can help supplement your income.

4. Spend on career opportunities

While now is the time to minimize your spending, paying to attend conferences and other networking events could open doors to a new (and possibly better) job, especially if you’re considering an industry or career switch. Plenty of industry or profession-specific groups on websites like Meetup and Eventbrite host mixers that will only cost you a few drinks – or are completely free. 

Going back to school to earn a certificate or degree will not only help you become more employable, but will also help build your professional network. You know what they say: it’s who you know. So get to know more people!