The recession has hit all Canadians hard. But apparently the nation's younger generation is feeling it the worst. While unemployment has remained a major concern, especially among students who were looking for work before returning to the classroom, it seems as if many young people are still finding it difficult to save their money.

As Brenda Bouw of The Canadian Press reports today, “young Canadians are saving less than their parents and grandparents did at the same age, with young men being the worst at sticking to a budget, according to the results of a new survey.”

The survey, which was conducted by TD Canada Trust indicates that 80 per cent of Canadians found that saving money was too difficult and that those aged between 18 and 34 were more concerned about saving money to buy a house rather than for retirement.

The main culprit, as reported by the majority of young adults who participated in the survey, was the inability to make enough money for all of their required expenses. As compared to 29 per cent of people aged 55 and over who said that they saved between 10 and 25 per cent of their total monthly income when they were younger, only 19 per cent of those aged 18 to 34 claim that they are able to achieve this same goal.

Debt was also accused of being a major hindrance for young people to save more of their money. Perhaps surprising to some, 28 per cent of male respondents regarded debt as a major concern while only 18 per cent of women saw debt as a problem. According to the survey, women are better at sticking to a budget.

According to TD's senior vice-president Carrie Russell, saving money is not a talent that comes naturally to most. “It has to be practised…and the earlier you start the better off you will be.”

To many, women are often regarded as big spenders. Russell reports, however, that they are better at budgeting because of the practice they get at home dealing with family finances. “They often deal with that tradeoff on what to spend money on, and what not. It’s a daily decision,” she says.

Regardless if you are a man or woman, it is clearly important to find ways to save as much of your income as possible. Especially during these tough economic times that is fraught with decreasing job opportunities, some of us need all the money we can get.

Are we finally coming out of this depressing recession? Are Canadians beginning to feel the pressure of the economic downturn slowly lifting? According to The Conference Board of Canada, the answer is apparently “yes”.

It was reported earlier today that consumer confidence has increased this month, marking the seventh consecutive month that this statistic has risen. This marks the longest streak since 2002. According to business reporter, Madhavi Acharya-Tom Yew, the board's survey found that consumer confidence has risen 2.5 points to 90.9 per cent.

In their own report, The Canadian Press noted that the percentage of consumers who felt that it was a good time to make a major purchase rose to 49.9 per cent – the highest level in nearly two years. 40.1 per cent of respondents felt that it was not.

Although the Conference Board admits that negative responses to such surveys still outweigh the positive ones, it was still found that the number of people who feel that they are better off financially now than they were six months ago has also increased by 1.3 points to 13.7 per cent.

Interestingly though, Acharya-Tom Yew notes that there was a 0.8 per cent decline to 27.5 per cent in the number of respondents who felt that their families would be better off financially six months from now.

Most of the people surveyed, 53.9 per cent, replied that they expect no change in their financial situation over the course of the next six months.

Acharya-Tom Yew notes that the survey indicates that Canadians are feeling more optimistic about the employment situation in the county. 72.8 per cent of respondents anticipate that there will, at least, be as many jobs as there are now in six months.

The survey of 2,000 Canadians, conducted in the first two weeks of September indicates that the country is either seeing better days financially or at least, really wants to.

With all of the talk about the recession over the past several months, it is always heartwarming to hear of good news that occurs within the world of job hunting. As the Synergy Merchant Services Blog continues to seek such news, Synergy Merchant Services continues do its part in helping the economy by offering new career opportunities to worthy applicants.

We remain happy to maintain our hiring streak and are just as happy to report on some good news today as it relates to unemployment in Canada. For the first time in 11 months, the number of Canadians receiving Employment Insurance benefits has decreased. Ontario, Quebec and Alberta experienced the biggest declines, based on numbers retrieved from July by Statistics Canada.

As Business Reporter, Madhavi Acharya-Tom Yew writes today, records show that in July, 787,000 Canadians received regular EI benefits which was down 31,500 from June – a 3.8 per cent drop. In addition, the number of initial and renewal claims also decreased by 25,500 to 274,700 – an 8.5 per cent drop.

Sun Media's Althia Raj received comments from Statistics Canada analyst, Vincent Farrao about this finding. “It’s a combination of some people going back to work and some people exhausting their benefits,” he said, noting that there is an indication that employment is picking up.

More than half of Ontario's decline in EI beneficiaries were in Toronto, although the 107,810 people receiving benefits this past July is still 59,670 people greater than the number of EI recipients in July 2008.

Acharya-Tom Yew notes that United Steelworkers economist Erin Weir warns in a report that the news of declining EI numbers is not necessarily all that good.

Weir writes: “A likely explanation is that significant numbers of unemployed workers are now running out EI benefits without finding jobs. This development underscores the importance of enacting the proposed benefit extension for some long-tenured workers, but also the need for broader EI reform to improve benefits for all unemployed workers.”

She does note however that, “the silver lining in today's figures is that the number of new EI claims continued to decline. This trend seems to confirm that, while unemployed workers are not finding jobs, the pace of layoffs has slowed.”

Headline news was made earlier today in Toronto when its mayor, David Miller announced that he would not be running again for a third term in 2010. At a press conference today at City Hall, he revealed his desire to spend more time with his young children as a contributing factor to his decision.

As Sun Media's Bryn Weese writes today, Miller had privately already come to this decision after his mayoral victory in 2006. Apparently, he had already foresaw the demands of his prestigious job being ones that would be pressing for a dedicated father.

Said Miller: “When I was a councillor, the demands on me and my family were significant. After my election as Mayor, the pressures on me as a father and as a husband became immense, and I realized then were I to be re-elected in 2010, and serve until 2014, my daughter would be in university and my son would be about to graduate from high school. This would not allow me ever to have been there for them in the way they deserve.”

Speculation has risen that Miller's decision to willingly step down as Toronto's mayor may have been prompted by his declining popularity. Following a summer that included a 39-day strike of city workers, it is possible that Miller saw the writing on the wall.

While some may take this as a sign of Miller's wish to duck responsibility and not own up to the demands of Torontonians, he insists that he will not be a “lame duck” mayor for his final 14 months in the position. As Charlene Close of 680News writes on their website, Miller looks forward to being able to concentrate harder on city business instead of campaigning.

Miller's announcement has come just days after one of his finest gestures as Toronto's mayor. Dressed in a swank black blazer at Toronto's ManifesTO hip-hop festival this past Sunday at Nathan Phillips Square, Miller addressed the crowd to announce the declaration of September 21st as the International Day of Peace in Toronto. The announcement was met with applause and gratitude.

While some may miss Miller, others likely look forward to a new mayor of Canada's largest city. Who that will be will not be determined until November of next year. Love him or hate him though, Miller will certainly be remembered.

One of the greatest benefits of participating in Synergy Merchant Services' cash advance program is the avoidance of an accruing interest rate. Without having to worry about a balance accumulating interest, business owners across Canada may rest assure that they will never find themselves in a position where their account is in default.

Late payments and their associated fees are non-existent. Being considered “past due” is unheard of. Since attaining a merchant cash advance does not involve credit, a business owner's credit score does not become affected. If only the program could be extended to the every day consumer.

Alas, that is not the case. Today, The Canadian Press reported that, unfortunately, a startling majorityof Canadian credit card bills are going unpaid, pushing cardholders into a state of delinquency. According to the report, nearly 60 per cent of Canadian credit card debt is being written off by issuers of the credit.

Citing a report from the quarterly Moody's Canadian Credit Card Index, The Canadian Press reveals that the number of delinquent accounts, which are determined by payments that are 30 days past due, rose by 23 per cent in the April to June period of this year, compared to the same time last year.

Evidently, the increasing financial stresses brought on by the global recession continues to take its toll on Canadian credit card users. Charge-offs – when a creditor gives up on collecting past due debts by charging them off its books – are reaching an all-time high.

Currently, the charge-off rate is at 4.8 per cent, a 57 per cent jump from the 3.07 per cent rate achieved in last year's second quarter. According to Moody's: “The intensity of the current recession has led to charge-offs that have exceeded previous cyclical highs by a relatively wide margin.”

Even more harrowing is the realization that the ever-increasing charge-off rate is simultaneously increasing along with Canada's unemployment rate – at 8.7 per cent, as of August.

Moody's expects that Canada's rate of unemployment will hit 9.6 per cent by 2010's second quarter. Not surprisingly, the charge-off rate is expected to rise along with it. Needless to say, this only means more Canadians will be developing worse and worse credit.

Many of the clients we speak to at Synergy Merchant Services communicate their concerns about entering into a situation where they may not have enough cash flow. Especially during these tough economic times, it is not uncommon to meet business owners who are worried about being short on necessary cash.

Synergy recognizes the importance of maintaining a comfortable amount of funds in order to meet regular expenses. We have ensured through our merchant cash advance program that business owners will only be required to pay what they can afford, in addition to NOT having their batch out times interrupted.

As well, Synergy Merchant Services is proudly the only “no lock-box” merchant funding company in Canada. Therefore, Canadian business owners who are looking for an alternative source of extra capital to help grow their businesses are NOT required to change their current business bank account or open a new one.

Most merchant funding companies are based in the United States where merchant funding has become an increasingly prominent source of extra capital for businesses for the past decade or so. While many of them have achieved success on home soil, such companies do not have direct relationships with Canadian financial institutions or point-of-sale processors.

So, when a U.S. merchant funding company wishes to work with merchants in Canada, the Canadian merchant is required to open a trust account, or lock-box, with a third-party organization and split their funds.

As a result, these merchants lose the ability to control the money made from their very own batch outs which negatively affects their cash flow. Sometimes the delay in receiving their funds can be up to a full work week!

With Synergy Merchant Services’ cash advance program, a Canadian merchant has the luxury of avoiding this entire process. Synergy Merchant Services has become “Canada’s Merchant Funding Company” by offering this “no lock-box” relationship as a benefit to our clients.

The solution to helping you grow your business is here. If you’re a Canadian business owner looking for extra capital, say “yes” to Synergy and “no” to lock-box!

Yesterday, it was reported that Calgary, Alberta is expected to be one of Canada's leaders by helping the nation out of the recession with an impending spending boom. Today, Kristine Owram of The Canadian Press reports that the rest of the country may be following suit.

In her report, Owram notes that some of Canada's major retailers are seeing an increase in sales during this second half of the year. For many of these companies, promotions, lower price points and rewards programs seem to be doing the trick by luring customers into their stores more often.

Owram interviews Jurgen Schreiber , the president and CEO of Shoppers Drug Mart Corp., who remarks that the company's Optimum rewards program allows for customers who are price-conscious to take advantage of further savings during Canada's financial crisis. Shoppers Drug Mart reports that the number of active Optimum cardholders has increased by two million over the past two years to 9.7 million.

In a country inhabiting a little over 30 million people, Shoppers can certainly brag to have a very high membership of their Optimum program. They report that 65% of in-store transactions are currently accompanied by use of the Optimum card. As well, statistics reveal that Optimum members have increased their spending at Shoppers three times greater than that of non-Optimum members between 2004 and 2009.

Says Schreiber: “Whenever you capture your consumer, you have to make sure they’re in and they buy as much as they can. It’s very simplistic, but that’s the way we structure our flyer.”

Martin Schwartz, chief executive of Dorel Industries, also reports that his company has been prosperous throughout the recession. Makers of such goods as bicycles, home furniture and child car seats, Dorel claims that it owes its success to having appropriate price points during the time of an economic downturn.

Says Schwartz: “Retailers are focusing more on what we term opening- to mid-price points as shoppers of every description are gravitating to the big-box outlets.You’ll see quite a variety of demographics in a Wal-Mart these days, many I’m sure who rarely ever shopped there before. We excel in these price-point categories with the majority of our sales in this area.”

Clearly, it is still possible to not only survive but “beat” the recession. With more stories of prosperity among Canadian businesses seeing the light, perhaps signs of the end of the recession are truly getting brighter.

In many ways, the recession is like an economic tornado, destroying everything and everyone in its path. Apparently, no one is safe from the effects of the nation's economic downturn. Businesses and consumers alike have been feeling the crunch for what feels like an eternity now.

Perhaps, making it worse is the series of reports that has been coming from the media which tend to send conflicting messages. Things are looking up one day, while the next it appears as if they are only getting worse. In one story, consumers are encouraged to start spending to support the economy. In another, they are advised to save up as much as possible.

In yet another example of “good news” being delivered to the Canadian public, earlier today, Sun Media's Markus Ermisch reported that Calgary's retail sales are expected to push towards record numbers over the next four years. Good news for Calgarians…or is it?

Ermisch notes that after declining sales over the past two years, the Conference Board of Canada predicts that in 2010, retail sales will rise by 3.9% totalling $21.2 billion. They contend that this rising trend will continue well into 2013 when sales reach nearly $26 billion – an increase of $5 billion in four years.

While the prediction of great things to come for Calgary's economy is clearly a welcome thought, it should come as no surprise if some Canadians view such claims as wishful thinking.

The Conference Board, however, appears to be firm on its stance, citing the “growing investment in the oilpatch” as the main reason consumers will resume their confidence in spending.

Dan Sumner, an economist with ATB Financial, appears to be more realistic. He was quoted as saying: “Obviously, there's a lot of uncertainty in forecasting out that far. I'm not sure if the growth is going to pick up that quickly. But since we've seen a slow economy in 2008 and 2009, there's a good chance that there'll be some reasonable growth in the couple of years after that.”

Sumner remains hopeful, remarking that it is only normal to expect a spending rebound following a “pent-up” demand for it. However, only time will tell if Calgary will “giddy-up” and lead Canada on its way out of the recession.

Synergy Merchant Services is a proud member of The Canadian Restaurant and Foodservices Association which has earned the reputation of being a trusted activist on behalf of its numerous members.

With membership consisting predominantly of restaurant owners and food distributors, the CRFA itself is a member of the Stop Sticking It To Us Coalition – a group of Canadian associations representing more than 120,000 businesses that have unified in order to prevent the seemingly never ending increase in credit card fees.

Marching on with their lobbyist efforts in April of this year, the CRFA finally encouraged the Senate Committee on Banking, Trade and Commerce to investigate the fees charged to merchants and consumers by the credit and debit card industry.

Hearings had been taking place since late March where the Senate had heard testimony from merchant processors, consumer groups, banks, credit unions and government officials. At these hearings, the CRFA reported its concerns about Visa and MasterCard’s competition practices and their policies surrounding “interchange fees” in an effort to outdo each other. The role of Interac in the Canadian payment system was also addressed.

This past April, the Senate Committee heard from Visa, MasterCard and Interac along with a number of merchants. The CRFA contended that credit card companies and banks had entered into “unfair practices” that lead to significant increases in costs for restaurant operators which, in turn, forced higher prices for menu items onto customers.

A survey on CRFA’s website revealed foodservice operators reported a 24% increase in credit card fees throughout 2008. The CRFA reported that “Canadian restaurateurs are still baffled by the skyrocketing credit card fees being charged to restaurants each time a customer pays with Visa or MasterCard”.

The CRFA continues to maintain its lobbyist efforts on behalf of its members by continuing to meet with government officials in order to review a number of issues. Among the concerns are the fees being charged to merchants for accepting credit cards as well as the ability merchants have to pass the cost of accepting credit cards on to customers through surcharges.

Filling up at the gas station is one of those inevitable necessities for many Canadians. The need for a car – to get to and from work, to pick up and drop off the kids at school and pretty much to get to any point A to any point B in a reasonable time – is a great one.

Therefore, the price of gas is generally a concern on the mind of drivers everywhere.

Earlier today, The Canadian Press reported that Canada's inflation rate remained in the negative for the third straight month, citing the low cost of gasoline and energy as the main reason.

It wasn't too long ago that many Canadians were reasonably upset over the price of gas as it remained well above a dollar per litre for a healthy portion of the calendar year. According to Statistics Canada, gasoline and food prices have been leveling off as of late.

As the press release notes, in August of 2008, filling up the gas tank cost an average of $1.27 per litre, whereas it only cost approximately $1.01 per litre at pump stations in August of this year.

Although it has been leveling off in the past few months, the price of food, on the other hand, has risen since last year. The Canadian Press report indicates that food cost 4% more this past August compared to the same time a year ago. However, this is lower than the 5% and the 5.5% increase in food prices experienced in July and June of this year, as compared to last year, respectively.

So, it would appear as if the transportation industry is showing the most significant signs of having declining prices. In addition to lower gasoline costs, the price of vehicles had decreased by 4.7% in August as well.

Meanwhile, “household operations, furnishings and equipment, health and personal care, recreation, education and reading, and alcohol and tobacco all cost more in August than a year ago.”

Perhaps driving is safer than what was once thought, after all.

More bad news for Canadians seeking jobs today. What else is new, right? Well, unless you're seeking employment opportunities with Synergy Merchant Services – who is still hiring – it doesn't appear as if getting a new job is going to come all that easy for those looking for a way to battle out of this recession.

The recession, of course, has left many a Canadian the victim of cutbacks to the workforce. The trend, apparently will continue to rise over the next year as Canada's rate of unemployment is expected to jump to almost 10 per cent from 8.7 per cent, says business reporter Iain Marlow in today's edition of The Toronto Star.

Contrary to previous reports, a report released by The Organization for Economic Co-Operation and Development earlier today noted that despite the federal government's stimulus package and global signs that the recession is coming to an end, Canada's unemployment rate continues to rise.

As has been discussed on the Synergy Merchant Services Blog, Ontario continues to be hit hard by the joblessness rate, especially in the manufacturing sector. This has contributed to the bulk of the 486,000 full-time jobs that have been lost since around this time last year.

The OECD report, says Marlow, notes that job loss has been particularly brutal for young adults aged 15-24 who experience an unemployment rate of 16.3 per cent. This approximately doubles the adult rate.

According to the report: “Even if the unemployment rate has already peaked, Canada's labour market typically takes a long time to recover from recessions…The unemployment rate in the early 1990s recession peaked in early 1993, but did not drop below its prerecession level again until almost eight years later.”

If there is some glimmer of hope in this seemingly hopeless scenario, it comes courtesy of the new “Help Wanted Index”. Marlow writes that this index, which measures online job postings, found that in August there was a rise of 2.6 per cent compared to July.

Says Pedro Antunes, director for the non-profit research group's national and provincial forecast: “While the Help Wanted Index does not yet point to a rebound in hiring, it suggests that the number of job losses is bottoming out.”

Synergy Merchant Services' commitment to offering hard-working and determined Canadians the opportunity to start a new career remains intact. We hope to inspire more companies across this great nation to develop more positions for qualified, yet out-of-work citizens. The recession has to end some time.

At this point, it goes without saying that the recession has hit Canadians hard. Reports as of late, however, seem to indicate that Ontario may possibly have been hit the hardest. From Ontario’s parents spending the least on their children’s back to school needs to Ontario showing the slowest development of new job opportunities, studies have shown that the province seems to be feeling the effects of the nation’s financial crisis the worst.

Today though, there is news of a new sign that Ontario is contributing to Canada’s fight to have its economy bounce back. Statistics Canada reports that Ontario leads the nation in sales of new motor vehicles helping for the automotive sector to gain a well-needed boost.

Although the national sales of new motor vehicles in July were still down by 8.5 per cent in comparison to the same time last year, sales rose by 5.3 per cent from June to 126,665 units.

According to The Canadian Press, sales of both passenger cars and trucks were up, especially North American-built cars which saw a sales increase of 15.3 per cent in July. Overseas cars, on the other hand, actually saw a 4.4 per cent dip in sales that month.

Ontario is leading the country with more than two-thirds of the national increase in sales of new motor vehicles. Trucks, minivans, SUVs, vans and even buses all saw rises in sales in July. British Columbia, however, has earned the distinction as the province with the lowest growth in sales, as they were up by only 1.5 per cent.

Alberta experienced the largest year-to-year sales drop of any province. Even though new motor vehicle sales rose by 2.2 percent in July, it was still 20.2 per cent lower than sales in July 2008.

Of course, buying an automobile falls under that category of large expenditures. Canadians should be reminded that unless something is a necessity, you should avoid purchases that are unaffordable without the use of credit.

Automobiles, in addition to mortgages and school tuitions, are some of the few life requirements that economists generally recommend paying over time as opposed to being able to afford in a lump sum payment.

Although spending during the recession is a still a part of helping to boost the economy, surviving the recession means making smart spending choices.

Hopefully, as Ontario leads the way for Canada to overcome its financial crisis through automobile sales, the citizens of the province will not find themselves wrought with further debt that is unmanageable.

Surviving through the recession comfortably will come as a result of being diligent with these guidelines. That, and wearing your seat belt, of course.

As has been extensively discussed on the Synergy Merchant Services Blog recently, there are a number of surveys that have been conducted over the past several months trying to determine the type of impact the recession has had on Canadians. Without question, employment loss ranks as one of the most severe ramifications of the nation's financial crisis.

On the other hand, some other surveys have determined that the economy is nearing a comeback to a more prosperous status. Meanwhile, there are still reports being released that detail Canada's sinking into further debt. Who and what are we to believe?

No matter what surveys say – especially when you consider that they are based on responses by a very small part of the population – one thing is for sure. The recession is hitting Canadians hard. No proof is greater than the fact that while many are losing jobs, so many others are unable to afford their everyday living requirements with the income that they are currently generating.

Earlier today, business reporter Madhavi Acharya-Tom Yew revealed the results of yet another survey. Conducted by the Canadian Payroll Association, the survey found that “nearly two-thirds of Canadian workers say they would have trouble making ends meet if their paycheque was delayed by even one week.”

Living paycheque to paycheque – a life status that no one wishes for – seems to be the norm amongst the majority of Canadian workers today. Clearly, the recession is not over yet.

Janice MacLellan, chair of the Canadian Payroll Association had this to say: “We were shocked by that number. So many Canadians are now living so close to the line that, if they miss a single paycheque, a majority will find themselves in financial difficulty.”

Acharya-Tom Yew notes that younger workers seem to feel the pinch of the recession the worst with 45 per cent of workers aged 18 to 34 remarking that “it would be difficult for them to meet their financial obligations if a paycheque were delayed.” An incredible 72 per cent of single parents feel the same way, according to the survey.

The sad bottom line revealed by the results of this survey is that Canadians have been attempting to save more money now than in years past. The only problem is that most have been unsuccessful in doing so.

For as long as the recession has lasted, there has been advice doled out by seemingly everyone to overcome it. While some insist that it is important to save money, others believe that spending will, in turn, boost the local economy. What to do?

Today, Brenda Bouw of The Canadian Press explores this conundrum that she says economists call “the paradox of thrift”. This is a state by which saving too much money can actually “lead to an overall drop in consumption and threaten a nation’s economic growth.”

As CIBC World Markets economist Krishen Rangasamy points out in Bouw's article, people natually feel most comfortable spending when times are good. When a recession hits, the mindset changes and most people consider saving for the future. The unfortunate ramification of this practice is that consumption drops, contributing to a weaker economy and greater job loss.

This, of course, raises a number of questions. How can one expect to save money while being encouraged to spend? What is the perfect balance between saving and spending that will help the economy while not going broke yourself?

According to Rangasamy, “zero per cent savings is not good and neither is 40%.” BMO Capital Markets economist Douglas Porter offers advice that is just as vague saying that “there is no 'magic number' when it comes to how much Canadians should save and spend.”

Porter suggests, however, that one's saving and spending habits should be predicated on his or her own individual lifestyle. A retiree, for example, does not need to save as much while a young adult who is just starting out has to be careful with spending because he or she will have large expenditures.

Bouw's article also warns that the type of spending one does can have adverse effects on one's financial situation. Be careful of credit, says Laurie Campbell, executive director of Credit Canada.”That’s what got us into this mess in the first place.”

Bouw relays what Campbell offers as what is probably the most sound advice for anyone: “There is nothing wrong with spending money, but only if you can afford the purchase and you planned and researched it ahead of time.”

“When unplanned purchases become impulsive, that is when it’s not okay to spend,” she said.

Today, the Canadian economy took centre stage and made headline news with the announcement of the country's deficit being worse than expected this year. As reported by Ottawa Bureau's Les Whittington, a total of $101 billion between this and next year make up the anticipated national debt.

With flashbulbs going off and a cluster of microphones in his face, Finance Minister Jim Flaherty faced the media today to deliver the less-than-stellar news. He admitted that between now and 2014-15, “Ottawa's budget shortfall will total more than $160 billion.”

To make things worse, the government is unsure when it will have the opportunity to reasonably “balance the books” again. A senior federal government official predicted that “it may take between five and ten years to put an end to the federal deficit.”

Flaherty, however, insists that recovery is imminent, citing the cutting of growth in government spending, a tax freeze and the trimming of transfer payments to the provinces as methods expected to be used to eventually maintain economic stability.

Says Flaherty: “”But restraining the growth in government spending will still mean tough choices for the government. It will require decisions of government that won't always be popular or pain-free.”

Cuts to important services are never popular, of course. While strengthening the nation's economy is at the forefront of most Canadians' minds these days, there are certain necessities that many will not wish to do without. Thankfully, federal government officials have already promised that there will be no cuts to payments to seniors, students and transfers to the provinces for health services.

Nevertheless, joblessness is another major issue that today's news will greatly affect negatively. With the hope of more job opportunities on the horizon, Canadians are now faced with yet another sorrowful dose of reality. As Whittington writes: “Unemployment will continue to rise and hit 9 per cent next year, up from the 7.7 per cent predicted in the January budget.”

With a pending Federal election in the works, it is without question that Canada will be looking to its leaders to address the ever-worsening state of the national economy. As the deficit grows, so do the worries of Canadian citizens.