What to Do If You Lose Your Job

It’s an unfortunate reality in any recession that jobs will be lost while the economy finds its way to stronger footing. Nobody wants to be a victim of a recession, but there are a several things that you should be doing if you lose your job to ease the transition to future employment. If you find yourself being handed a pink slip, keep these important steps in mind:

-          File for Unemployment: Being laid off automatically qualifies an employee to receive unemployment benefits. Some people delay this step, finding it hard to swallow their pride and ask for financial help when their job is lost. Others feel that the amount offered to the jobless is not really enough to make a difference. On average, the unemployment benefit comes to just under $300 per week. This will probably not cover all of your bills, but it will make a big difference until you can find steady employment again. It’s easy to file online in most states, and you should receive your first check within 2-3 weeks.

-          Retrain: Some laid off workers have a hard time finding new job opportunities, and one common reason is that they lack training that is up to date with today’s technology. Take some time if you lose your job to retool, sharpening your skills with commonly used computer programs and job hunting techniques. There are classes available through various organizations and many of these courses are provided at little or no cost. This is an especially good idea for older workers who may be less familiar with basic technical skills required for typical jobs.

-          Be Willing To Accept Less Than What You Really Want: Sometimes just getting your foot in the door with a company makes it worth taking a less desirable position than the one you’re really after. There are opportunities to move up within a company and working for a company you’re interested in allows to you network with the right people who will consider you for future opportunities.

-          Prioritize Sources of Income: There is a temptation among many laid off workers to tap into their retirement funds when they are laid off. These funds are available, but only at a heavy price. Between taxes and IRS penalties for workers younger than age 59 ½, you can end up giving up nearly half of every dollar you withdraw. Instead, cash out savings accounts and CD’s first, making your 401K or IRA your last resort for cash.

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