Recently Laid Off? 5 Things To Do Right Now

monkeybusinessimages / Getty Images/iStockphoto

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

The onset of the COVID-19 pandemic resulted in a financial rollercoaster that adversely affected the economy, and the ripple effects can still be felt five years later. This has included considerable job layoffs, and if you’re part of this group, you’re certainly not alone.

Luckily, there are steps you can take now to get back on track. Here are five things you should do immediately if you get laid off, according to Ramsey Solutions and InCharge Debt Solutions. 

Ask About Severance Pay

When a company decides to lay off staff, typically, they will offer severance pay to employees. The amount offered may range from a few weeks to several months and can depend on your seniority and the amount of time you’ve worked for the company. If you feel like the severance pay you’re being offered isn’t sufficient, consider consulting with a labor attorney who may be able to help you negotiate better terms.

Claim Unemployment Immediately

If you’re affected by a layoff, don’t delay collecting unemployment insurance benefits. These payments can help you stay afloat and make it easier to pay the bills while you search for a new job.

Depending on the amount you’ve been earning, you may be eligible for benefits by filing a claim with the unemployment insurance program in the state you were working. It’s important to note that the maximum weekly benefit amount, the number of weeks you can collect a benefit, and who qualifies for benefits can vary from state to state.

Cut Your Expenses and Start Budgeting

A layoff means you might all of a sudden be without a source of consistent income. This means that cutting expenses and aggressively budgeting becomes crucial.

Review your bank statements to identify the spending categories you can cut down on and perhaps recurring monthly expenses you can eliminate. If you haven’t budgeted before, the old-fashioned pen-and-paper method or a simple Excel spreadsheet may be a good place to start.

Consider Picking Up a Side Gig

Side gigs can serve as a financial lifeline in the event of a layoff. Whether it’s babysitting, becoming a rideshare driver or food delivery worker, bringing in extra income while you search for a new full-time job will likely be necessary. Additionally, building and maintaining a side gig even while you’re working full time can add an extra stream of income and seriously help lessen the financial blow that often comes with a layoff.

Update Your Resume and LinkedIn Profile

If you find yourself without a job, updating your resume and optimizing your LinkedIn are two important factors in the job hunt. Recruiters may like to see relevant, up-to-date experience including positive key metrics showcasing the impact you had at each place you’ve worked. At the same time, having a polished LinkedIn profile may increase your chances of landing interviews and your visibility to hiring managers hunting for potential new hires.

Source

• Ramsey Solutions, What To Do If You’re Laid Off (and How To Prepare)
• InCharge Debt Solutions, What To Do When You Get Laid Off

Share This Article: