Losing your job is scary, even if you knew it was gonna happen. Most people panic when it sinks in that they no longer have a steady income. However, never fear! We’re here to guide you through the ins and outs of surviving sudden unemployment.
Unemployment in This Economy? (It’s More Likely Than You Think.)
Losing your job in any circumstance can be a shock, and in 2024, many people are feeling more conflicted than ever over their job loss.
You may be thinking, “Wait a minute, unemployment has dropped!” While unemployment has decreased from 3.9% to 3.7% since December 2021, the labor force participation rate remains low. The Bureau of Labor Statistics defines the labor force participation rate as “the percentage of the (noninstitutionalized, civilian) population that is either working or actively looking for work.”
Perhaps you have been out of work for a while and have not been looking for a new job until recently. If so, this article will be an informative refresher on how to get back into the job search zone.
Uncertainty around government regulation of the tech industry may also play a significant role in how employment is affected in 2024. Whether you are one of the more than 200,000 people laid off in 2023 from the tech sector, somebody who quit or was fired due to employer unwillingness to accommodate employee needs, or have become unemployed for unrelated reasons, this article may help you.
In this two-part series, I'll show you the steps you can follow to get through this time of crisis and once again be healthy, happy, and prosperous.
You'll learn how to:
Gather your personal information, open an unemployment benefits claim, ensure healthcare coverage, and evaluate your finances (Part One).
Work through the emotional difficulties of unemployment and manage your stress (Part Two).
Remember, you are not alone in your struggles. If you feel like there is no hope for you, please call the National Suicide Prevention Lifeline at 1-800-273-8255.
We wish this series will inspire hope that you can survive your sudden unemployment. Here's where to start.
Put That Phone Down
Hold off on making business contacts. You may be tempted to immediately contact your business associates and start sending out your resume. Before you do this, develop a strategic plan for returning to work. Time spent planning upfront will eliminate missteps and accelerate landing your ideal job. A job search or career coach may be a helpful ally in this process.
Take Notes
Begin to organize your information. If you have a resume, share it with someone you trust who will give you an objective view of your skills. If you do not have a resume, take the time to outline your career history (employer names and locations, job titles, starting and ending dates for each job, and basic scope of responsibility.)
Any written performance reviews or feedback from people familiar with your work will help give you ideas for writing about your talents and accomplishments.
Make a list of personal and professional connections in your network. Once you’ve decided on a job target and developed your resume, you’ll want to contact people who can help you network.
See my post “Create an All-STAR Resume for 2024” for a simple technique for writing a more powerful resume.
File for Unemployment
Open an unemployment benefits claim. File your claim for benefits with your state agency as soon as possible. Each state has its own programs and eligibility requirements. However, unemployment insurance programs generally provide benefits to people who:
Have enough employment to establish a claim;
Have lost employment through no fault of their own;
Are ready, willing, and able to work; and
Are actively seeking work.
Find out if your state offers an unemployment benefits calculator. (A simple Google search can identify if one is available.) There are two types of unemployment calculators — one that shows you how much money you are entitled to collect and another that shows you how many weeks you are eligible to collect unemployment.
If you have a skill that allows you to freelance, such as writing, graphic designing, or programming, check out the Freelancers Union for additional resources to boost your income while unemployed.
Let’s recap what you’ve learned so far. First, don’t immediately jump into a job-search frenzy after becoming suddenly unemployed. Take time to consult people you trust, work on your resume, and start an unemployment benefits claim. Following these steps will help you move forward in a more organized way after losing your job.
What Next?
Employment often provides benefits like healthcare coverage. Losing your job and losing your health insurance often go hand-in-hand. Plus, with a loss of income, you may worry about the basics of affording groceries, paying bills, and managing debts. Explore programs to help you stay healthy and make ends meet during this time.
Ensure You’re Insured
Check that you have healthcare coverage. Applying for healthcare coverage might initially seem overwhelming, but it doesn’t have to be. If you don’t qualify to continue on your employer’s health insurance plan through COBRA (Consolidated Omnibus Budget Reconciliation Act), create an account at healthcare.gov and apply there. Your state may also have its own programs for healthcare coverage (such as Wisconsin’s BadgerCare program), so check with your state agency for your eligibility.
If you need additional assistance applying for coverage, there are resources that you can use. Get help on your application from a broker near you through healthcare.gov.
Manage Your Money
Evaluate your finances. One of the biggest mistakes many people make after losing their job is not making immediate adjustments to their budget. Although it is natural to want to maintain your standard of living, now is the time to tighten your belt and reduce expenses where possible.
If you were already living paycheck-to-paycheck, there will likely be a dramatic impact on your cash flow. You will want to cut expenses and use more community or government resources for the foreseeable future. There is nothing shameful about needing help.
The following are ways to extend your finances during unemployment:
List your expenses and see what you can cut out. Determine which of your monthly expenses must be maintained (mortgage and car payments, utilities, groceries) and which ones you can reduce or defer. You may need to scale back to making minimum payments on your credit card bills.
Now is an excellent time to hold a garage sale. Or you can sell items on Facebook Marketplace, buy/sell/trade groups, or Craigslist.
Determine if you need to find other sources of income — for example, a part-time job. (This income may impact your unemployment benefits, but you may need the money to carry you through until your unemployment compensation comes in, which could be two to four weeks or longer.) Bridge jobs are becoming increasingly popular among those who have lost careers they never thought they would lose.
Joining the gig economy may not seem ideal, but if a part-time or subcontracting job can help supplement your income, do not hesitate to follow such opportunities. Look into dog walking/pet care, food delivery, temp agency work, and joining consistently understaffed industries (hospitality, education, or retail) What passions do you have that can be monetized?
If you have trouble making your mortgage payment or paying other bills (credit cards, auto loans, student loans), contact your lenders. Many have forbearance programs that allow you to make reduced payments (adding missed payments to the end of the loan period). Call your debtors to negotiate your payments before you fall behind.
Explore your eligibility for programs with your credit card company. You may be able to reduce your interest rate or lower your required minimum payment due to your job loss. (If you have involuntary unemployment credit card insurance, the minimum payment may be covered if you are laid off for a specific period. However, charges incurred after the layoff are excluded.)
Look into special programs for the unemployed, such as the Supplemental Nutrition Assistance Program (SNAP) or “food stamps.” Each state has a different application form and process, so contact your state agency directly to apply. Remember that transactions using your SNAP-issued EBT card are confidential and can reduce the grocery costs from your budget.
Use your company resources. When you were furloughed, your company may have provided information about job search benefits. If your company continues to pay part or all of your salary while you’re at home, that should be specified in the information you were given. Likewise, if you are not being paid, you may be able to access accrued vacation or sick pay.
Cashing money out of your retirement account is not recommended unless it’s a last resort, as you will be sacrificing the long-term growth of this money. Meet with your financial advisor to determine which assets are wisest to draw from during unemployment.
For many people, cutting back on spending and getting support from government or private programs is embarrassing. Set aside your pride.
This situation is not ideal, but remember that these programs exist for a reason — to help those who need it! There is nothing shameful about receiving government benefits during financial uncertainty. You don’t need to rely on them your whole life, but while you are unemployed, you need a helping hand to get you back on your path to success.
In the second part of this two-part series, I'll give you tips and resources to deal with unemployment's emotional and psychological effects.
Need personal assistance with your resume or job search? Book a complimentary consultation today!
Kristin S. Johnson, CJSS, CCMC, COPNS, CG3C, CBBSC
Job Search Coach and Resume Writer
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