By October 23, 2021 the Canada Recovery Benefit (CRB) will have come to an end. The program began last year when CERB ended and the government created a modified EI program to continue supporting those out of work. An estimated 2 million Canadians are currently still using these benefits. Meaning the end of the program could have a drastic impact on individuals and businesses and the effects could be seen for years to come.
Who Will the End of the CRB Affect?
Approximately 40% of Canada’s workforce has benefited from these programs. Many have returned to work, but some have remained in the program out of choice, or lack of option. Unfortunately, not everyone is prepared for when the funds stop coming. For those that have not regained employment, this holiday season may be very stressful. It could also change the economy in some major ways. For example, young folks may be forced to move back in with family because they can no longer afford living expenses. Or parents who cannot work because they can’t afford child care may struggle to put food on the table. There is no doubt that the end of the CRB will cause stress and panic for many, but it’s important to plan for what comes next.
Many businesses have also been struggling as the pandemic drags on to attract, and retain staff; specifically those in sectors impacted by the closures. Hospitality and retail industries across the country have seen significant staffing shortages, due to two large contributing factors:
- Unreliable income – Closures, limited capacity, limited hours, etc. have made it difficult to rely on. Causing many to turn to more consistent sources of income, especially as the work-from-home lifestyle has boomed
- “Paid vacation” – There may have been an appeal of riding out CERB, CRB and/or EI instead of going back to work. Especially for those who would be making smaller paychecks than what the benefits provided.
However, as vaccine rates increase, the economy hopes to remain open and operational, ensuring more employment stability within these sectors. Many are hopeful the end of EI and CRB will have a positive impact on reversing the staffing shortages in these sectors.
What Comes Next?
Funding will come to an end in coming weeks and you may be faced with financial uncertainty. But as mentioned previously, hospitality and retail areas have seen staffing shortages in response to business closures. And as these closures hope to be a thing of the past, there are many opportunities to get back into the workforce quickly in one of these areas. A quick search on Indeed for restaurant postings in Canada currently yields more than 15,000 results. While a search for retail positions offers more than triple that. It’s just a matter of narrowing down what openings are closest to you.
Companies across the country have also started expanding their hiring criteria with more opportunities to work remotely. Many organizations now have teams spread across the country as the pandemic has shown that remote work can be just as productive. It may be worth checking outside of your city or province for potential job opportunities.
In the meantime, check out our article on 10 Ways to Make Money Fast When You’re Unemployed. The suggestions may not be long term solutions, but could help bridge the gap in the meantime.
What Financial Options Do You Have?
At LoanConnect we recognize that everyone may need funding at some point in their life. And we want to work with you to get the best option available. Re-entering the workforce may not be a quick process, but bills and expenses don’t get put on hold in the interim. Our goal has always been to help make financial support more readily available for everyone. We recognize that as EI and CRB come to an end, there will be many left in a place of need.
Applying with LoanConnect is free and won’t impact your credit score. It will, however, give you an accurate representation of what terms and rates are available to you at this time. And there is no obligation to continue with any of the lenders you may be pre-approved for. If your rates aren’t what you’re hoping for, read more about tips to avoid loan rejection and better prepare your finances before securing a loan. And if you aren’t eligible for a loan at this time, we have additional programs available to help get you, and your credit, back on track. Check your options today.