Over the years Brantford, Ontario has suffered some significant job losses. The biggest job loss probably occurred in 1988 when Massey Ferguson went out of business in Brantford, and Brantford’s unemployment rate peaked at almost 14% in 1993, as seen in this chart:
I was reminded of this when I learned this week that Raymond Industrial Equipment Ltd., a large forklift and pallet truck manufacturer and a significant employer in Brantford since 1966, was laying off about 50 full time employees, and other contract employees will also lose their jobs. Approximately 400 employees will remain at the plant, but the employees who lose their jobs will have to replace this job with another hopefully well paying job.
Last year employment in Brantford grew by 5.5% (after declining 3.3% in 2004), so it’s no surprise that the personal bankruptcy rate in Branford fell 2.3% in 2005. (481 consumer proposals and bankruptcies were filed in 2004, falling to 470 in 2005). Clearly, employment does have a significant impact on the rate of bankruptcy in Brantford, and it’s easy to see why.
While people are working, they have the cash flow to pay their living expenses and service their debts. As soon as they lose their job they may be forced to use credit cards and lines of credit to survive. This increases their debt, and without an income to pay the debts, the debts increase, often leading to personal bankruptcy.
If you have lost your job, or had your hours reduced at work, and if that has caused debt pressure, feel free to give my office a call in Brantford at (519) 770-4440 or e-mail us to set up a free consultation to review your options, and determine what needs to be done to get back on track.
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