Your Employees Are Feeling the Economy Too
If you’re a small business owner in Northwestern Ontario, you may be looking at the current economic environment and thinking:
“We’re not directly affected by tariffs. Why should this be an HR issue for us?”
It’s a fair question.
Maybe your business doesn’t export to the United States. Maybe you don’t import tariffed products. Maybe your customers haven’t changed their buying habits … at least not yet.
But your employees are living in the same economy as everyone else.
- They’re buying groceries.
- They’re paying mortgages or rent.
- They’re filling their vehicles with gas.
- They’re replacing appliances, buying building materials, paying for children’s activities, supporting aging parents, managing household debt and trying to plan for the future.
Some have partners whose employment may be affected by economic uncertainty. Others may be worried about their own job security, even if there’s no immediate reason to be.
And some are simply tired.
The current Canada-U.S. trade environment is another layer of uncertainty on top of pressures that many families were already experiencing.
As of August 22, 2026, the United States imposed a
50% tariff on $27.6 billion of Canadian goods. Canada has announced matching counter-tariffs on $27.6 billion of U.S. products, effective September 8, 2026, including products in sectors such as steel, appliances, agricultural equipment, pulp and paper, plastics and electronics.
But here’s the important part for employers:
You don’t have to be directly affected by a tariff for your employees to feel its effects.
And that’s where good HR, and good leadership, comes in.
The Quick Version
If you only take five things away from this article, make them these:
- Your employees bring their whole lives to work. Financial pressures, family responsibilities and uncertainty don’t disappear when someone walks through the workplace door.
- Your business doesn’t need to be directly affected by tariffs for your employees to feel economic pressure.
- Employee wellness isn’t about expensive perks. Some of the most meaningful supports cost little or nothing.
- Small businesses can create meaningful employee supports without having a full HR department.
- The best solutions are tailored. What works for a 10-person construction company may not work for a 20-person retail business, municipality, professional practice or family-owned operation.
Most importantly:
You don’t need a huge budget to show your employees that you care. You need to understand what your people actually need, and then find practical ways to respond.
The Economic Uncertainty Is Bigger Than Tariffs
It can be tempting to think about tariffs as a business problem:
- What will this cost us?
- Will our suppliers increase their prices?
- Will our customers spend less?
- Will our margins shrink?
Those are important questions.
But there’s another question worth asking:
What is happening to the people who work for us?
The Bank of Canada found that during the 2025 tariff episode, prices for tariffed goods increased by approximately
6% relative to non-tariffed goods, with categories such as groceries and appliances among those affected. Statistics Canada has also reported continued price pressures across household expenses in 2026.
That doesn’t mean every increase at the grocery store or hardware store is caused by tariffs.
It does mean that many Canadian households are operating in an environment where every dollar matters.
And employees don’t necessarily tell their employers when they’re struggling.
They may simply:
- become more distracted;
- stop participating in workplace activities;
- decline overtime because of family responsibilities;
- ask for more flexibility;
- use more sick time;
- appear tired or disengaged;
- become anxious about job security;
- have difficulty concentrating;
- or quietly start looking for another job that offers better compensation or flexibility.
Sometimes what looks like an employee performance issue is actually a life pressure issue.
That doesn’t mean employers should ignore performance problems.
It means we should pause long enough to understand what may be underneath them.
Northwestern Ontario Is Feeling the Pressure
Northwestern Ontario has a unique economy, and many communities are particularly connected to forestry, manufacturing, mining, transportation, tourism, construction, agriculture and cross-border trade.
We’ve already seen examples close to home.
The indefinite closure of Interfor’s Ear Falls sawmill affected approximately 150 workers and had significant implications for the community. Local labour-market reporting has identified tariffs, market conditions and uncertainty in the forestry sector as important factors affecting the region.
(NTAB Labour Market Report)
In Dryden, Dryden Fibre Canada received $1 million through the federal Regional Tariff Response Initiative to help secure fibre supply, avoid pulp-mill slowdowns and protect jobs.
(Government of Canada – Grants and Contributions)
In Fort Frances, local business leaders have spoken publicly about the broader impact of tariffs and rising costs on families—including the increasing cost of everyday household purchases.
(Your Kenora.ca – April 27, 2026)
And in Kenora, the local Chamber of Commerce has highlighted concerns about tariffs contributing to higher costs, supply-chain disruption, delayed investment and pressure on workers and communities.
(KDCC – July 23, 2026)
These examples aren’t meant to suggest that every Northwestern Ontario employer is facing a crisis.
Quite the opposite.
They demonstrate that economic uncertainty can travel through a community in many different ways.
- One person’s employer may be directly affected.
- Their spouse’s employer may be affected.
- Their supplier may be affected.
- Their customer’s business may be affected.
- Their household expenses may be affected.
And suddenly, the economic issue becomes an employee issue.
What Does It Mean to Support the “Whole Employee”?
Supporting the whole employee doesn’t mean becoming responsible for every problem in an employee’s personal life.
Employers aren’t financial advisors, counsellors, social workers or family therapists.
And employees don’t expect their employer to solve everything.
What employees often need, however, is an employer that recognizes:
“We know you’re a person before you’re an employee.”
That can look like:
- recognizing that people have responsibilities outside work;
- providing reasonable flexibility when possible;
- making mental-health resources accessible;
- offering benefits employees can actually use;
- communicating openly during uncertain times;
- helping employees understand available community resources;
- training managers to recognize when someone may be struggling;
- creating a workplace where asking for help isn’t viewed as weakness;
- recognizing good work;
- and treating people with dignity when circumstances are difficult.
None of those require a massive HR department.
What Can Small Businesses Actually Do?
Employee wellness does not have to mean an expensive wellness program.
It doesn’t necessarily mean bringing in a yoga instructor, buying standing desks, offering catered lunches or paying for a complicated employee wellness platform.
Those things can be nice.
But they’re not the foundation.
The foundation is understanding your people and intentionally building supports around what matters to them.
Here are some practical options:
Look at the Benefits You Already Have
If you already provide an extended health or dental plan, don’t assume employees know everything available to them.
Take a fresh look.
Does your plan include:
- counselling?
- paramedical services?
- prescription coverage?
- virtual health services?
- mental-health supports?
- family supports?
- an Employee Assistance Program (EAP/EFAP)?
Sometimes the most affordable wellness program is the one you’re already paying for but aren’t fully using or fully promoting.
Consider providing employees with a simple annual benefits refresher.
Make it easy.
Tell them what is available, how to access it and where to go with questions. It’s not a flashy presentation, it’s just a conversation.
Consider an EAP or EFAP
An Employee Assistance Program can provide employees and, depending on the plan, their families with confidential access to professional support.
For a small employer, this can be an effective way to provide access to resources without having an in-house counsellor or wellness specialist.
Depending on the provider, services may include support related to:
- mental health;
- relationships;
- family challenges;
- financial concerns;
- legal questions;
- addictions;
- grief;
- stress; and
- other personal challenges.
If you already have an EAP, talk to your employees about it.
Don’t just bury the information in an employee handbook.
Think About Financial Wellness
You don’t have to become a financial advisor to support employees experiencing financial stress.
You can start with education and awareness.
For example:
- provide information about community financial resources;
- offer benefits information sessions (if you provide company benefits);
- remind employees about pension or retirement resources; and
- provide contact information about available government support programs.
And sometimes, simply acknowledging that financial stress is real can make a workplace feel more human.
Build Flexibility Where You Can
Flexibility can be one of the most valuable employee supports, and sometimes it doesn’t really cost the employer a thing.
Could you offer an employee the flexibility to:
- shift their start time occasionally to manage a family responsibility?
- attend a medical appointment by flexing their time during their workday?
- work from home occasionally if their role allows?
- adjust a schedule temporarily during a difficult period?
- take a longer lunch and make up the time?
- swap shifts with a co-worker?
Obviously, not every job can accommodate every option.
A person working in a retail store, restaurant, construction crew, manufacturing environment or health-care setting may have very different flexibility options than someone working in an office.
That’s okay.
Flexibility doesn’t have to be identical to be fair.
The goal is to look at what is reasonably possible to support your employees within the realities of your business.
Train Your Managers
Your managers are often the first people to notice that something has changed.
They may see:
- a normally engaged employee becoming withdrawn;
- increased absenteeism;
- conflict between employees;
- declining performance;
- someone who seems unusually anxious;
- or an employee who simply doesn’t seem like themselves.
Managers should not be expected to become counsellors.
They do, however, need to know how to have a respectful conversation.
Something as simple as:
“I’ve noticed you don’t seem quite like yourself lately. Is there anything I can help you with at work today?”
… can open the door.
The employee may say no.
That’s okay.
The point isn’t to force disclosure.
It’s to let them know the door is open if they need to talk.
Communicate More. Not Less.
When the economy is uncertain, employees can fill information gaps with assumptions.
If people hear rumours about layoffs, reduced hours, declining sales or business difficulties, anxiety can grow quickly.
If there is something you can share, share it.
If you don’t know the answer, be honest and say that.
If there is no change to your workforce plans, say that too.
You don’t have to promise that nothing will ever change.
You can simply say:
“Here’s what we know today, here’s what we’re watching, and here’s what we’ll communicate when we know more.”
Honest communication builds trust.
Don’t Underestimate Recognition
When people are worried about money, job security or the future, feeling valued at work matters.
Recognition doesn’t have to mean a $500 bonus.
It can be:
- a sincere thank-you;
- recognizing someone’s contribution in a team meeting;
- celebrating a milestone;
- acknowledging extra effort;
- giving someone an opportunity to learn something new;
- providing meaningful feedback;
- or simply noticing good work and sharing a compliment directly with the employee.
And here’s the most important part:
Make recognition genuine.
People know the difference between authentic appreciation and a corporate program that feels like a checkbox.
Connect Employees With Community Resources
You don’t need to provide every service yourself.
Northwestern Ontario has organizations that already exist to help people.
For example,
211 Ontario connects people with community and social services, including food, housing, employment, financial assistance, family services and mental-health supports.
That means a small employer can keep a simple community-resource list available for employees without having to become the service provider.
Depending on your community, that list might include:
- 211;
- local food banks;
- community mental-health services;
- crisis supports;
- housing resources;
- employment and training programs;
- Indigenous community resources;
- municipal programs;
- family services; and
- local financial assistance programs.
You don’t have to solve the problem. You can help someone find the right door.
What About Mental Health?
This deserves special attention.
Economic uncertainty can contribute to stress, anxiety and emotional fatigue.
And when people are already carrying family responsibilities, financial pressure or uncertainty about employment, another layer of instability can become overwhelming.
Employers can help by:
- normalizing conversations about mental health;
- ensuring managers know what supports are available, to share with employees;
- promoting EAP/EFAP services;
- providing reasonable flexibility where possible;
- encouraging employees to use vacation time;
- avoiding a culture where working while exhausted is treated as a badge of honour;
- and making it clear that asking for help is not a sign of weakness.
In Northwestern Ontario, resources such as the Canadian Mental Health Association and community-based mental-health services can also provide support.
The key for employers is knowing your boundaries.
Your focus is to create a supportive workplace, not becoming the employee’s healthcare provider.
You Don’t Need a Huge Budget
At Lobstick Total Solutions, we’ve worked with organizations of very different sizes and with very different resources.
And we’ve seen something repeatedly:
The size of the organization doesn’t determine whether employees feel supported.
A small employer with 10 employees may have a better workplace culture than an organization with 500.
Why?
Because someone is paying attention.
Someone knows the employees.
Someone notices when something isn’t right.
Someone asks, “What do our people actually need?”
You don’t need a $10,000 wellness budget.
You don’t need a full Human Resources department.
You don’t need a complicated employee engagement platform.
You need to start with your people.
Then build from there.
What This Looks Like in Northwestern Ontario
Supporting employees in Northwestern Ontario also means understanding our communities.
We are strong communities, but we are not big cities.
We’re not a large urban labour market where employees can easily find another employer, another service provider or another housing option.
In many of our communities:
- people know one another;
- families are connected;
- businesses are interconnected;
- spouses may work for different local employers;
- seasonal work can be significant;
- transportation can be a challenge;
- housing can be limited;
- and community reputation matters.
A business decision can have a ripple effect.
So can a good employer.
When a local employer supports their employees through a difficult period, those employee are more likely to remember it.
- They may tell their family.
- They may tell their friends.
- They may stay.
- They may become stronger ambassadors for the business.
That’s not just “being nice.”
That’s good business.
Five Common Mistakes Employers Should Avoid
- Assuming “We’re not affected” means your employees aren’t affected.
Your business may be fine today while your employees are experiencing financial or family pressures outside work.
- Trying to solve everything yourself.
You aren’t expected to be a counsellor, financial advisor or social-service agency.
Know the services and contacts available, in your community, of where to refer people.
- Introducing expensive perks instead of addressing real needs.
A pizza lunch doesn’t solve financial stress.
A wellness app doesn’t automatically create psychological safety.
Start by asking what employees actually value.
- Treating flexibility as favouritism.
Create clear guidelines for flexible working arrangements and apply them consistently, while recognizing that different jobs have different operational realities.
- Waiting until there is a crisis.
The best time to build employee supports is before you desperately need them.
When Should You Bring in Help?
You may be thinking:
“This all makes sense, but I don’t have an HR department to help with this.”
That’s exactly where outside HR support can be useful.
You don’t need to hire a full-time HR professional to build a thoughtful employee wellness strategy.
You may simply need someone to help you:
- understand what your employees need;
- review your current benefits and policies;
- identify gaps;
- develop practical wellness initiatives;
- create manager tools;
- build a resource guide;
- improve communication;
- review compensation and retention strategies;
- or develop an employee support plan that fits your business.
And you don’t have to do everything at once.
Sometimes the right answer is small changes throughout the year, not a giant HR program implementation all at once.
How a Lobstick Engagement Works
At Lobstick Total Solutions, we believe HR support should be practical, collaborative and realistic.
Small businesses shouldn’t have to choose between supporting their employees and staying within their budget.
The Conversation
We start with a conversation:
- What is happening in your business?
- What are you hearing from employees?
- What challenges are you seeing?
- What are you already doing well?
- And where are the gaps?
The Assessment
From there, we look at your current environment including your benefits, policies, workplace practices, workforce and specific employee needs.
There isn’t a one-size-fits-all wellness program.
The Plan
We work together to identify practical solutions that make sense for your business, your employees and your budget.
That might mean:
- improving what you already offer;
- adding one or two targeted benefits;
- creating a simple employee resource program;
- training managers;
- developing a flexible-work approach;
- improving communication;
- or building a broader employee wellness and retention strategy.
The Results
The goal isn’t to give you a binder that sits on a shelf.
It’s to give you something you can actually use.
Something practical.
Something your employees will understand and appreciate.
And something your business can realistically sustain.
You Don’t Have to Spend a Fortune to Be a Great Employer
The current economic environment is challenging.
Trade uncertainty is real.
Costs are changing.
Businesses are watching their margins.
Employees are watching their household budgets.
And nobody knows exactly what the next few months will bring.
But there is an opportunity here for small businesses.
You can choose to be the employer that simply waits for the uncertainty to pass, or the employer that recognizes its people are navigating it too.
You don’t have to solve the economy.
You don’t have to solve every employee’s personal situation.
And you don’t have to spend a fortune.
You can simply create a workplace where people know:
“My employer sees me as a whole person.”
That can make a remarkable difference.
At Lobstick Total Solutions, we help small and mid-sized Northwestern Ontario businesses develop practical HR solutions that fit their business, their people and their budget.
Our approach is simple:
- Understand the need.
- Build the right solution.
- Make it practical.
- Make it sustainable.
If you’re wondering what your business could be doing differently to support your employees through these uncertain times, let’s have a conversation.
No massive HR department required.
No one-size-fits-all program.
Just practical, tailored support designed to help your business, and the people who make it possible, succeed together.
Key Takeaways
- Your employees don’t leave their financial, family or personal concerns at the workplace door.
- Economic uncertainty can affect employees even when their employer isn’t directly affected by tariffs.
- Northwestern Ontario communities are experiencing real economic impacts across forestry, manufacturing, retail, construction and other sectors.
- Employee wellness doesn’t have to be expensive.
- Many meaningful supports involve communication, flexibility, recognition and connection to existing resources.
- Employers should use community and professional resources rather than trying to solve every problem internally.
- Small businesses can build meaningful employee-support strategies without needing a full HR department.
- The best solutions are tailored to the employer’s workforce, operational realities and budget.
- Getting started with a few practical changes is better than waiting until a problem becomes a crisis.
- Your employees are people first.
- Supporting the whole person isn’t just good HR.
- It’s good business.
Helpful Northwestern Ontario Resources