40 per cent of jobs could be lost to automation
New technological advancements could eliminate jobs
The Canadian workforce is going to be a lot lighter in the next 10 years with the loss of 40 per cent of jobs due to automation according to the chair of the government’s economic growth advisory council.
The Chair of the council, Dominic Barton says two out of five jobs will be lost because of technological advances which may leave many workers in the workforce vulnerable. Barton says Canada should focus on some areas to invest in instead of trying to essentially be “great at everything.”
“Automation takes time, and doesn’t happen overnight, but we have all seen what can happen when vital parts of our economy change rapidly and the effect it can have on our financial well-being if we are not prepared. Take for example the oil industry, and the impact it is having on residents in Alberta, or back in 2008/2009 when the auto industry took a turn and the impact it had on communities that depended on jobs in that sector. Some communities still haven’t bounced back,” says Jeffrey Schwartz, executive director, Consolidated Credit Counseling Services of Canada.
“Automation is happening and it will have an impact on the economic viability of many jobs, companies and communities if we aren’t prepared,” says Schwartz.
Although it can be difficult to plan for the unexpected, Consolidated Credit Counseling Services of Canada recommends the following for consumers so that they can be prepared:
Know your worth-today
Take a proactive stance with your finances by creating a current budget. This will give a clear indication of your monthly expenses and how much money you will need to manage it in the event of a reduction in your income temporary or otherwise.
Save for a rainy day
Almost 50 per cent of Canadians are ill-prepared for an emergency. Consumers can save themselves from a lot of heartache by creating an emergency fund before an emergency occurs (e.g. job loss). Aim to set aside at least three to six months’ worth of living expenses (food, mortgage, insurance etc.).
Create a new me
If you sense that your job might be in jeopardy as a result of automation, don’t wait for that day to come. Be proactive, what other skills do you have, or which of your current skills are transferrable to other roles? Alternatively, consider learning a new skill or taking on professional development for roles in a thriving industry.
Contact your creditors
If the loss of your job is a done deal and your budget is indicating you are unable to pay your bills, pick up the phone and call your creditors. You may be able to negotiate a temporary payment plan. Just remember ignoring your bills is the worst possible thing to do. Refraining from paying your bills will not only affect your credit score – it can affect your payment terms too.
Seek help
If you just lost your job and you are at your whit’s end trying to contemplate how you’re going to pay your bills, stop worrying and pick up the phone for some help. No one should have to carry a heavy burden of debt alone. Speak to a trained credit counsellor and they will help you manage your debt.
For more information on this and other financial literacy and credit issues, visit the online Financial Education Centre at www.jamati.budgetlounge.ca and http://iicanada.org/epb/finance or if you are experiencing financial stress due to debt issues and would like to find solutions, you may call this toll-free # 1-844-329-3834 and speak with a trained credit counsellors from Consolidated Credit.