Over the past year, Canada has experienced a noticeable economic softening, with the national unemployment rate rising to 6.9% as of April 2025—with March 2025 marking the first net job loss in over three years, primarily due to declines in full-time positions. While these figures reflect a slower and more sector-specific shift than the abrupt job losses seen during the COVID-19 crisis, many Canadians are still grappling with job insecurity.
Losing a job has negative impacts not just on your financial health, but also your physical and mental health. Several studies have demonstrated a clear connection between being laid off and increased rates of depression, anxiety, substance abuse, trauma and suicide. What is more is that research has found that while losing your job can negatively impact your mental health, poorer levels of mental health can lead to a lower likelihood of getting another job. As economic pressures persist, it’s more important than ever to develop practical, compassionate strategies for coping with job loss and navigating uncertainty, and caring for our mental well-being—both as individuals and as a society.
What are the Impacts of Losing a Job?
Losing a job takes away more than just your paycheck.
When people lose their jobs, they often go through things like:
- Feeling like they’ve lost their sense of purpose or meaning in life
- Struggling with low energy, motivation, and zest for life
- Missing the routine and structure their job gave them each day
- Feeling helpless or like they’re not useful anymore
- Losing the chance to use their skills on meaningful projects that made them feel in control and accomplished
- Even if you know an external factor like the economy caused the job loss, you might still feel like your work wasn’t valued, which can make it hard to trust your employer
- Missing the social side of work, like the role you had and the people you connected with
- Dealing with emotions like grief, anger, and sadness
Navigating the Emotional and Social Challenges of Job Loss
Losing a job can feel just as painful as losing someone close to you. It’s normal to experience a wave of emotions—grief, sadness, anger, and confusion—as you navigate this difficult loss.
If you’re feeling overwhelmed, know that you’re not alone.
Here are some suggestions to help you heal emotionally and stay connected with others during this challenging time.
Acknowledge How You’re Feeling
Losing a job hits hard, and it’s totally okay to feel scared, stressed, angry, or frustrated. You may want to reflect on, “What did losing this job mean for you?” Whatever you’re feeling, don’t push it aside or beat yourself up—your feelings are real and valid. Remember, you’re definitely not alone in this.
Find What Feels Good for You
Self-care isn’t one-size-fits-all so it will look different for different people. Maybe it’s going for a walk, blasting your favorite music, cooking up a storm, journaling, meditation, hitting the gym, or just binge-watching your favorite show. Whatever helps you feel even a little better, make time for it every day.
Cut Yourself Some Slack
Don’t fall into the trap of blaming yourself, questioning what you could’ve done differently, or comparing your journey to others — especially not on social media. People only show their highlight reels, not the messy moments like eating ice cream on the couch and wondering if they’re doing enough. And that’s okay.
Reach Out to Your People
Call or video chat with friends and family–or even better, set up an in-person date. Share how you’re really doing, even the tough stuff. You might be surprised how opening up can help others share their struggles too, and it’s a chance to reconnect with people you might not have had time for before when you were working.
Start or Join a Support Group
Connect with peers in your field or friends going through the same thing. Sharing your experiences can feel like a weight lifted off your chest, plus you’ll pick up tips, resources, and maybe some new job leads.
Don’t Be Afraid to Get Help
Talking to a licensed mental health professional like a therapist can make a big difference in sorting out your feelings and finding your footing. Many offer online sessions, so it’s easier than ever to get support when you need it.
Focus on What You Can Control
It might sound strange, but one of the best ways to feel more in control is to accept the things you can’t control right now—like the job market or how long it’ll take to hear back from employers. To gain control is to accept what one cannot control. Once you let go of that stress, you can start focusing your energy on the stuff that is in your hands.
Here are some ideas to get started:
Take a Fresh Look at Your Budget
Money worries can be overwhelming, but creating (or updating) a simple budget can help ease some of that stress, especially if you have anxiety about your ability to cover costs in the short-term while you’re looking for the next job. Look at where your money’s going and see where you can cut back. It’s not just about getting by—it’s also about setting yourself up for future goals as having a budget can help you focus as well on longer term financial goals such as retirement.
Tackle That “Will Get To It Later” List
Got a list of things you’ve been meaning to do forever? Now’s a great time to tackle it. Clean out your closet, organize your space, finish that DIY project, or finally start that blog. Checking these off your list can bring a surprising sense of relief and accomplishment.
Give Back (Even a Little)
Volunteering and helping others can do wonders for your own well-being. It gives you a reason to get out of bed, keeps you connected, and reminds you that you still have a lot to offer. Whether it’s online support, delivering groceries, or just checking in on a neighbor—it all matters.
Test the Waters with Freelance Work
Got a skill? You can probably freelance it. Whether it’s writing, graphic design, tutoring, or consulting, sites like Fiverr make it easy to connect with people who need what you offer. It might not replace a full-time job, but it can build confidence—and income to bridge the gap.
Build New Skills Online
Learning something new can be energizing. From coding to creative writing, there are tons of online courses (many free or low-cost) that can help you grow professionally—and give you an edge when you’re meeting future employers.
Listen and Learn on the Go
Not in the mood to take a course? All good. Podcasts and audiobooks can be a more relaxed way to reflect, get inspired, and learn strategies for managing change, setting goals, and staying motivated, to get more clarity on your direction in life and career.
Start (or Grow) Your Network
Most people find jobs through people they know—so don’t be shy. Update your LinkedIn, share your story or article about your work, reach out to contacts, or join virtual groups in your industry through places like Meetup.com. You never know who might help open a door. And nowadays, many employers find their next hire by looking at their online presence.
Revamp Your Resume and Cover Letter
Your resume is your first impression—so make it count, especially as many employers may only spend seconds when skimming through 100s of resumes. Keep it concise, clear, and easy to read. Tailor your cover lette for each role, and let your personality come through. If you’re not sure where to start, ask a friend or look up examples online.
Review Government Assistance Programs
Your government likely has programs that either provide temporary financial support or that help you transition into your next career. Some programs you may want to check out include:
- Canada-wide programs:
- Employment Insurance (EI): Temporary financial support for those who’ve lost their job through no fault of their own. Includes sickness, parental, and caregiving benefits.
- Canada Job Bank: Free job search platform with career planning tools and labor market info.
- Ontario-specific programs:
- Better Jobs Ontario: Funding (up to $28,000) for laid-off workers to retrain for in-demand careers.
- Ontario Works (OW): Financial and employment assistance for individuals in financial need.
- Ontario Disability Support Program (ODSP): Income and employment support for individuals with disabilities.
- Youth Employment Services (YES): Job training, support, and opportunities for youth aged 15–29.
From Surviving to Thriving: You’re Not Alone in This
Job loss can shake your sense of identity, stability, and self-worth—but it doesn’t define who you are. It’s okay to grieve, to feel lost, or uncertain. These emotions are real and valid. And while this chapter may feel heavy, it can also be the beginning of something new—an opportunity to reconnect with yourself, discover new strengths, and build resilience that will carry you through.
While in-between jobs, you probably find yourself with a little more time and fewer outside distractions. If you have the energy, this could be a chance to reconnect with things that matter to you—maybe explore personal goals, pick up a passion project, or just take a breath and reflect on where you are and where you’d like to go next in your career. But remember: this isn’t a productivity contest. Be gentle with yourself. Whatever you’re feeling or managing right now, know that it’s okay to take things one step at a time.
You don’t have to navigate this journey on your own. Whether you’re finding your footing or starting to look ahead, support is out there—and healing is possible. Sometimes, talking to someone who understands can make all the difference
📘 Looking for more tools? Check out our other blog posts and interviews on overcoming procrastination, becoming happier, and how job loss impacts personal identity.
💬 Need to talk? Our team of therapists is here to support you through this transition—reach out today to book a free consultation.