Pattie Lovett-Reid

Chief Financial Commentator, CTV

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It is one of the things you pay into and never really give too much thought unless it happens to you -- unemployment. The first question you ask yourself is: "Am I now eligible for employment insurance?”

The answer is "yes", if the job loss was not fault of your own, you have been without work or pay for seven consecutive days in the last 52 weeks, as well as worked for the required number of insurable hours in the last 52 weeks or since the start of your last Employment Insurance claim, whichever is shorter. The assumption here is that you are ready, willing and able to work and you are actually looking for work.

Here's where it gets a little dicey. You may not be entitled to benefits if you left your employer without cause, were dismissed due to misconduct or you are unemployed due to a labour dispute, such as a strike or lockout.

Given these parameters there are many, especially in Eastern Canada and in the energy sector, who have lost their jobs through no fault of their own. It is tough and while this doesn't solve the problem, the new changes to EI may help to ease the pain a little.

The Liberal government unveiled big changes to the program in an effort to target people they deem are most in need of a financial safety net. Some of the highlights include a pledge to extend regular EI benefits by 5 weeks to all eligible claimants to a maximum of 50 weeks. For long-tenured workers there's more help, an additional 20 weeks of regular EI benefits to a maximum of 70 weeks. This will commence in July. The changes target specific regions where the jobless rate increased by 2% or more between March 2015 and February 2016. Those regions include Newfoundland and Labrador, large parts of Alberta and Saskatchewan, but also areas of B.C., Ontario and Manitoba.

The waiting period for EI claimants before they start receiving benefits is currently two weeks. It will be reduced to one. And a highlight is a pilot program underway that will be extended to 2018 allowing people to keep 50 cents of the EI benefits for every dollar they earn.

And the requirement to accept lower pay and longer commuting times the longer you rely on EI will be eliminated, but you still need to conduct job search activities and accept suitable employment should it become available.

Even with these changes -- which will cost Ottawa over $2.5 billion over the next two years -- for those losing high paying jobs in skilled fields this isn't going to help much and it could be tough to get by on EI alone. Benefits are 55% of your average insurable weekly earnings and the maximum earnings amount is $50,800 or $537 per week. What’s more, Alberta and Saskatchewan says unemployed workers in some of the hardest hits regions aren’t even eligible for the new rules.

What is really needed are new jobs.

So if you are still currently working but feel vulnerable to a potential layoff, here are a couple of ways to shore up your own balance sheet.

1) Reassess your financial situation, understand your budget and where you are spending your money.

2) Trim the budget now to boost your emergency savings.

3) Discuss a mortgage payment suspension with your financial institution or explore mortgage insurance.

4)Obtain a line of credit or credit card - don't use it , but have just in case. When you need it you might not be in a position to qualify for it.

5) Start to network and volunteer. It is so easy to become insular during difficult periods when you most need to connect, share and explore new options.

As the Chief Financial Commentator for CTV News, Pattie Lovett-Reid gives viewers an informed opinion of the Canadian financial climate. Follow her on Twitter @PattieCTV