Economic uncertainty has led to thousands of job losses throughout Canada in recent months, and experts say financial clarity is more important than ever for people who find themselves out of work.

Canada’s labour market remains tight with the latest addition of 35,000 jobs in March and a steady unemployment rate of five per cent, according to Statistics Canada, but experts warn that the recent string of interest rate hikes by the Bank of Canada will weigh on business sentiment for several months.

If someone is impacted by a corporate restructuring or becomes suddenly unemployed, personal finance advisors say it’s crucial to create an all-encompassing financial plan while leaning on support from the government or banks.

“When faced with a job loss, you need to find extreme financial clarity. Take stock of your situation, including how much money you have in savings, how much is easily accessible and how much you have in debt,” Melissa Leong, personal finance expert and author of Happy Go Money, said in an interview on Tuesday. 

She added that making a list of expenses that are separate from necessities will also be important as you can go line by line and cut out spending as required during this period. Leong also suggested that workers who have been let go should look to take advantage of any employee benefits they have remaining. 

As for financial assistance, Canadians who are eligible should apply for employment insurance as soon as possible to ensure a stream of income while they navigate what’s next, she added. 

Another place to look for help is at the bank, another expert advised.

“Calling your bank to renegotiate your debt, mortgage payments or other options is one way to ease the financial blow of losing a job,” Eitan Dehtiar, a consultant with Chartered Professional Accountants Canada (CPA), said in an interview on Tuesday.

As an option of last resort, Canadians can also look to take out money from their Tax Free Savings Accounts (TFSA) or their Registered Retirement Saving Plan (RRSP), he added. However, he cautioned that these withdrawals could have tax implications that should be considered prior taking this course of action.

Though reorganizing financial assets is critical during this time, workers who have lost jobs must also grapple with the reality that the journey back to employment can take time, said Lesley-Anne Scorgie, founder of the financial education company MeVest.

Securing a new job is a full-time job within itself, especially during a time when the interest rate environment is causing businesses to be more cautious on spending. This can result in a slower hiring process,” she explained.

When looking for new employment, candidates need to make sure their LinkedIn profiles and resumes are up to date, as this will speed up the process of finding work.

“It’s the law of probability. If you put in the work to make yourself an ideal job candidate, this will tremendously increase your chances to securing a new role,” Scorgie said.