The unemployment numbers released for March by Statistics Canada in a new weekly report are staggering. They provide a grave assessment of the current reality: swift unemployment is taking place across the country it's putting incredible stress on Canadians, especially for those in the core working years (aged 25 to 54). Financial education and tax-focused support is required and professionals in these industries need to be proactive. We offer 6 important ways to help.
Here are the details from Statistic Canada’s March unemployment report that highlight the swift repercussions to employment status as states of emergency were initiated between March 15 and 21. This report uses the March Labour Force Survey as a reference in that period, which recorded over 900,000 EI applications submitted. Note, however, that this report pre-dates the mandated closures of non-essential businesses that several provinces (including Ontario and Quebec) implemented later in the month. Some of the shocking statistics:
These numbers are sobering, at best. According to Statistics Canada, this one-month decline in employment is unprecedented. It is approximately 2.5 times as large as the cumulative decline in employment experienced during the 2008-2009 recession. It notes that from September 2008 to June 2009 overall employment fell by 400,000. At that time the unemployment rate rose from 6.1% to 8.7% and the decline in employment was primarily experienced by full-time workers and private sector employees, while the employment rate over this nine-month period declined from 63.4% to 61.3%.
What can tax advisors do to help? Here are the top three immediate actions to consider:
How can financial advisors help? Top three things to consider:
Those are a few positive things tax and financial advisors can do to help proactively in unprecedented times. Do you have more good ideas? Let us know and we will share them.
Evelyn Jacks is Founder and President of Knowledge Bureau and best-selling author of 55 books on tax planning and family wealth management. Follow her on twitter @evelynjacks and linked in.
Additional educational resources. If you have never taken a professional tax course in the past, this is a good time to do so. Tax efficient investment strategies are critical in times like this. Consider the DFA-Tax Services Specialist™ designation program as an important credential in your professional toolkit.
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