Adapting to Job Cuts in Canada: How Economic Shifts Are Pushing Workers into Survival Jobs

In 2024, Canada saw an increase in job cuts across several industries, driven by a combination of economic factors. Many Canadians are turning to "survival jobs"—low-paying or part-time work outside their typical career paths—to make ends meet. Here's a closer look at why this is happening and how people adapt.

1. Economic Uncertainty

One of the primary reasons for job cuts is the economic uncertainty caused by global inflation, rising interest rates, and disruptions in supply chains. These factors have led to increased operating costs for businesses, prompting many to downsize, freeze hiring, or restructure. The tech industry, in particular, has experienced significant layoffs as companies tighten budgets following the rapid expansion during the pandemic.

2. Industry-Specific Declines

Specific sectors in Canada, like manufacturing, retail, and media, have been particularly hard hit by automation, e-commerce competition, and shifting consumer preferences. For example, the ongoing shift to online shopping has led to store closures and reduced staffing needs. Similarly, media companies are downsizing due to declining advertising revenues, leading to job losses in journalism and content creation.

3. Shifts in Global Markets

Canada’s export-driven economy is also feeling the effects of global economic shifts, especially in industries like oil and gas, where demand has fluctuated. This volatility has led to job cuts in energy-producing regions, particularly Alberta. In addition, companies that rely on international trade have faced challenges, forcing them to reduce their workforce to remain competitive.

4. Rise of Automation and Technology

Automation continues to replace many routine jobs in manufacturing and service industries, contributing to workforce reductions. Many companies are investing in technology to improve efficiency, which has led to fewer job opportunities in roles traditionally filled by humans, such as cashier positions, warehouse workers, or administrative staff.

How People Are Coping?

Many Canadians are taking on survival jobs to meet their daily needs in response to job cuts. These temporary or part-time positions, often outside their regular career paths, help cover immediate expenses such as rent, groceries, and bills.

1. Gig Economy

The rise of the gig economy has provided an outlet for those looking for flexible, short-term work. Canadians increasingly turn to jobs like ride-sharing (Uber, Lyft), food delivery (SkipTheDishes, DoorDash), or freelance work in writing, graphic design, and tutoring.

2. Retail and Hospitality Jobs

Retail, fast food, and hospitality industries often serve as a safety net for those needing immediate income. Though these jobs typically offer low wages and limited benefits, they provide a steady income for people struggling to find work in their primary field.

3. Temporary and Contract Work

Many opt for temporary or contract-based roles in fields such as construction, caregiving, and administrative support. These jobs offer short-term financial stability but often lack long-term security or benefits like health insurance and paid leave.

4. Multiple Part-Time Jobs

Sometimes, people work multiple part-time jobs to make up for lost income. Juggling several jobs allows individuals to diversify their income streams. However, this often leads to long hours and increased stress, as it can be challenging to maintain a healthy work-life balance.

The rise in job cuts across Canada is primarily due to economic pressures, industry shifts, and technological advancements. Many Canadians have had to adapt by taking on survival jobs to cover their basic needs. While these jobs provide temporary relief, they often come with challenges such as low pay and job insecurity, leaving many workers in a precarious position until the job market stabilizes.