Regardless of how you got there, unemployment is difficult to face. It’s a traumatic experience that can be scary and overwhelming, especially if you have bills to pay and a family to support. Unfortunately, companies don’t always stay open—they get acquired, file for bankruptcy, or just shut down—and some employees are left without a role. It’s an undoubtedly difficult obstacle, but it can also be an opportunity to reflect on your career and plans for the future. If you’re feeling lost while dealing with unemployment, you’re not alone. Keep reading to see six things to do after losing your job.
1. File for Unemployment Compensation
One of the first things you should do is apply for unemployment. The government offers financial benefits to workers who meet specific eligibility requirements and have lost their job “through no fault of their own,” like if your role was eliminated or you were laid off. While the dollar amount will likely be significantly less than your lost salary, it can provide some funds to help you stay afloat until you secure another job. Each state manages its own program, which can have different benefits and lengths of time. Visit the U.S. Department of Labor’s website for information on your particular state and to file a claim.
2. Review your health coverage options
Even if you don’t have any serious health issues now, you shouldn’t skip out on health insurance. At the very least, health insurance offers you protection from unexpected medical bills that can result from events like a heart attack or stroke, a broken leg, or a visit to the doctor’s office when you have the flu. When you lose your job, you’ll have the option to apply for COBRA (Consolidated Omnibus Budget Reconciliation Act) health coverage, but you can also consider an individual health insurance policy through the Health Insurance Marketplace. Losing your job is considered a “life event,” which gives you the opportunity to enroll or change health care coverage outside the usual enrollment period. This means you may also consider being added to your spouse’s health care benefits if they have a plan through their job. Lastly, depending on your income, you may be able to qualify for Medicaid and CHIP coverage.
3. Get the details on your retirement plan
While we’re on employee benefits, you should also find out what happens to your company-sponsored retirement plan. Some plans allow you to leave your account intact with the current administrator, but you will no longer be able to make contributions, and many retirement plans won’t let you stay in the plan if your account balance is under a certain amount. If you are required to take a distribution, there may be some tax penalties if you don’t roll it over to another retirement account within 60 days. If you’re considering using your retirement savings during this period of unemployment, be sure to get the details and consult with a tax advisor before making any financial decisions as there could be consequences to dipping into this money.
4. Re-evaluate your budget
Once all the formalities are out of the way, it’s important that you review your finances and potentially rework your budget. Consider all of the non-essential bills you pay and items you purchase on a regular basis and see where you can trim the fat. Skip your daily Starbucks run, cut your own grass if you’re able, or consider putting your gym membership on hold. While nobody wants to give up their favorite luxuries, the fewer bills you have when you’re unemployed, the more financial breathing room you’ll have while you’re between jobs. Plus, this isn’t forever—this is just a temporary measure while you get back on your feet. You should also check your emergency fund and savings to determine how long you may be able to pull from those to cover any additional expenses.
5. Start your job search
Applying for a new role can feel daunting, but before you start, be sure to update your resume with your most recent position. Add any additional skills you’ve learned, training you’ve completed, or recognition you’ve earned. Resumes have changed over the years, so if you haven’t needed one in a while, review the current best practices. You may also consider looking at some of the role requirements of potential jobs, and reframing some of your experience to include those keywords.
Don’t forget to update your LinkedIn profile, as well. The majority of job interviews are earned through networking, and that includes via social media, so be sure to market yourself. Connect with everyone in your professional network—in person and virtually—and let them know you’re searching for a new position. Look for local networking events in your community, schedule informational interview meetings with people in your industry, and reach out to your alumni network. You never know where your connections will lead.
Another part of marketing yourself may involve a Google search of your own name. Employers will likely search for your name to see what you’ve been up to before they ask you to join their company. Make sure it’s all positive, appropriate, and employer-friendly. If not, this is your chance to clean up your social media accounts and adjust your privacy settings.
6. Take your time
Losing your job can be extremely stressful, so one of the most important things to do is to take your time processing your emotions. Not only is it frustrating to lose a job, but being unemployed can really hurt your self-esteem. And then it can be hard not to feel discouraged when you don’t see progress looking for a new role. Keep networking, keep sending out resumes, and keep going. It’ll be well worth it when you find the right job. In the meantime, work on the things you’ve never had time for; go for a run in the middle of the day, volunteer at the food pantry, organize that closet, or read a good book. This may be the only chance you’ll get, so use it wisely.
Key takeaways
- Review your final paycheck and file for unemployment as soon as possible.
- Check in with your health insurance and retirement plan options.
- Give yourself some grace—losing a job is tough, and it takes time to process.
Losing your job can be a big challenge and leave you feeling drained, emotionally and financially. But you’re not alone, and there are resources available to help you get through. We hope this helps provide you with some peace of mind while facing the unexpected.
