Three years ago, I wrote about six practical ways Canadians could prepare for an impending recession. That piece has resonated with hundreds of thousands of readers, especially this year, as economic uncertainty intensifies. The economic landscape has shifted since then: although inflation has been tamed, unemployment has risen, reaching 7.1 per cent in August, which is the highest level since 2016 outside of the pandemic. The Canadian economy lost 66,000 jobs in August, which is in addition to the 41,000 jobs lost in July. More jobs have been lost than expected. The economy is clearly weakening.

An RBC executive recently said the latest economic data contribute to the “evidence that the trade war is taking its toll on Canadian labour markets.” And digging a bit deeper into the data reveals another worrying trend: It’s getting harder to exit a spell of unemployment. Statistics Canada reported that only 15.2 per cent of those unemployed in July 2025 were able to find a job the following month, which is a drop from 23.3 per cent for the same month back in 2017 to 2019. And these worrying economic trends are not just in Canada, as the U.S. job market is slowing as well. In response to these data, the Bank of Canada and the U.S. Federal Reserve have cut interest rates.

It's therefore time to revisit and expand that advice. While the original recommendations still hold — all of them — it’s time for each of us to think well beyond this immediate period of economic uncertainty and turmoil and to think much longer term. Recessions will occur, and the advice given here will prepare you for recessions and other disruptions well into the future. It’s unwise to wait until we are entering a recession to prepare. Put simply, it is imperative for readers to not only think about their employment prospects over the coming month or year, but well into the future...and perhaps over your entire working career. 

1. Future-proof your career! Everyone should reassess their employment risk

Overlaid atop the economic data reviewed above is the emergence of Generative AI, and its potential to impact jobs. It is imperative that we think beyond the current economic environment and focus on career resilience. Everyone should assess how exposed their roles are to any potential disruptions, including the deployment of AI. A study by the International Monetary Fund (IMF) states that AI will impact 60 per cent of jobs in developed economies, with about half positively affected and the other half negatively. One big question to ask is how to be on the right side of this calculation.

Now think of the famous saying: You won’t be replaced by AI, rather you will be replaced by someone using AI. 

And these AI models are just getting increasingly powerful. The release of ChatGPT 5, for example, “knows when to respond quickly and when to think longer to provide expert-level responses,” according to OpenAI. It is a model with “extended reasoning for even more comprehensive and accurate answers.” The lesson to take from this is that the productivity gap between those using AI and those that do not will widen even further. It is imperative to therefore lean into these new technologies to ensure you are comfortable working with these new tools. Embedding AI into your workflow will serve as a source of career resilience.

2. Revisit your investment strategy

Those with an employer pension are indeed lucky, as the majority are not so lucky. But even with an employer pension, supplemented with CPP, it’s typically not enough for retirement. Everyone should therefore be saving for retirement beyond these established avenues. While such decisions should be made in consultation with a financial advisor, channeling your savings into a well-diversified portfolio is in most cases the preferred path.

Two important lessons arise from studies in this area: First, small differences in rates of return accumulate over the years into large dollar amounts available at retirement, and second, it is important to start as early as possible to gain the benefits of compounding. Once again, these decisions should be made in consultation with a financial advisor to ensure portfolios and investment strategies are appropriate for each individual or family. The important point to highlight, however, is with a nest egg building up for retirement, it can be drawn upon in cases of unpredicted job interruptions, or other life events.

3. Build a portfolio of income. That is, diversify income streams

Many people rely solely on their jobs for income. But it is advisable to think about building a personal income portfolio, and there are many ways to pursue such opportunities. One is directly related to the previous point. Again, in consultation with your investment advisor, income earned from the portfolios you invest in could supplement employment income, as long as retirement goals are kept in focus. That is, it is not necessary in all cases for the entire income earned in these portfolios to be reinvested. A well-thought-out savings and investment strategy can result in significant additional income available over one working career.    

4. Leverage social capital and your networks

For many employment positions, referrals for new jobs are not only incredibly important and effective, but in many cases essential. Building networks should therefore be part of one’s career resilience strategy. Many people often resist going to networking events, either because they feel uncomfortable or they are too busy. Many often interpret these efforts as a waste of time, only to realize that when they do need a referral, they are at a loss. Developing the ability to network and building relationships will pay off over time. It is misguided to only reach out to people when you need something like a job recommendation.  

5. Strengthen community ties

In times of economic uncertainty, social capital becomes a form of economic insurance. Your community can be a lifeline, not just for job leads, but for emotional support, shared resources and collaborative problem solving. Consider becoming more engaged with organizations that align with your interests within your community. These networks often thrive during downturns and can help you access services or opportunities at lower cost. Digital platforms like WhatsApp, and LinkedIn can be used to create hyper-local or industry-specific communities. The goal is to build reciprocal relationships that can help you weather economic shocks and thrive beyond them.

6. Invest in lifelong learning and stay ahead of the curve

In a rapidly evolving economy, the most resilient professionals are those who never stop learning. Whether it's formal education, micro-credentials, or self-directed study, continuous learning helps you stay relevant, adaptable and confident in the face of disruption. Technological shifts — especially in AI — are reshaping industries at an unprecedented pace. Staying current with emerging tools, trends, and skills is no longer optional. Platforms like Coursera, LinkedIn Learning, and edX offer flexible ways to upskill, while many employers now support learning as part of career development. Think of learning not just as a way to get ahead, but as a way to stay in the game. The most future-proof investment you can make is in yourself.

In summary, recessions will come and go, but the habits we build today—investing in ourselves, our networks, and our communities—will serve us for a lifetime. The future belongs to those who prepare for it.

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