by NEW YORK (AP) – Recent mass layoffs at tech and media companies, including eBay, Riot Games and the Los Angeles Times, may have you wondering about your job security.
If you’re worried about being laid off — or if you’ve lost your job — personal finance professionals and career counselors have suggestions on how to deal with it. They range from preparing an emergency fund to understanding your severance package.
IF YOU ARE WORRIED, YOU CAN SPREAD
SAFETY START
It’s important to build an emergency fund even when you feel secure in your job, but especially if you think you might lose it.
You may not be able to save enough to cover all the time you will be out of work, but even a small amount can reduce your stress.
When you start thinking about saving, Jesse Mecham, founder of money management app YNAB, recommends asking yourself this question: What do I want my money to do?
Maybe a year ago, you wanted to save money for a trip abroad, and now you want to have money in case you are out of work for six months.
If you’re paying heavily on debt and it’s affecting your ability to save, Mecham recommends slowing down payments. You should still make the minimum down payment, but you may want to consider temporarily using any money you’ve paid over that to build an extra cash cushion so you’ll have cash available if it’s you need. It’s also critical not to go into additional debt, Mecham said.
UPDATE YOUR RESTORE
It’s always a good idea to keep your resume up-to-date, but you should also keep it adaptable to several jobs, said Scott Dobroski, a career trends expert for Indeed. You can do this by leaving space in your resume to include keywords specific to the job you’re applying for.
Jobs may require slightly different skills if you plan to stay in the same industry, or completely different skills if you move to a different field. Keeping your resume up-to-date and customizable can make things easier when you need to move on.
Etienne Lupine, 46, a software engineer with Keysight, was recently told she will be dropped from the program at the end of the month. Soon after hearing the news, she decided to work on her resume and update her LinkedIn page.
Lupine has worked at the company for almost eight years and, although she was shocked by the news, she felt empowered when updating her resume.
“I can’t lose my job but I can try to present myself in the best possible way,” said Lupine, a resident of Lafayette, Colorado.
ACTIVATE YOUR NETWORK
It’s a good idea to tap into connections in your industry now, said career coach Marlo Lyons. A good start could be to talk to your friends about job openings elsewhere.
ADD TO YOUR SKILLS SET
Gaining new skills and adding certifications or courses to your resume can be a good way to move up in your current job. If you think you might have to go somewhere else, look for the skills that will make you a stronger candidate, Lyons said. Whether it’s taking a free online course or signing up for a specific license, adding the skills listed on your resume will have benefits whether you stay in your current job or need to find another. search.
Websites including Coursera and edX offer courses and certifications from universities across the U.S. They offer some of the courses for free.
IF YOU ARE LAYED
PRIORITIZE YOUR MIND
Losing a job can seriously affect your mental health. Take a breath and let yourself feel the emotions. Prioritizing your mental health will allow you to better approach your job search, Dobroski said.
For Lupine, starting her mental health means focusing on the positive aspects of a new chapter in her life, rather than dwelling on how difficult it will be to leave a job she loves.
“I’m trying not to focus too much on the negative feelings about it, because I know it won’t be easier for me to make a fresh start if I get upset,” Lupine said.
KEEPING BUSINESS
Keeping some structure in your day will help with your mental health and the right end to job interruptions, Mecham said.
Planning your days so that they include eating at your usual time, working out or going for a walk, and hitting jobs for a certain number of hours will keep you grounded, he said. Lyons recommends designating a time during the day to start and stop interrupting jobs.
“Don’t be too cocky when applying for jobs,” Lyons said. “Take time to do activities that make you feel good.”
Lupine indulged in her hobby to feel better. Her regular activities include baking, cooking and going to her curling club.
“I’m not stress eating. “I’m stress baking because I just cook things like, ‘Oh, what’s this new recipe that’s going to make me feel better?’,” Lupine said.
CHECK YOUR BENEFITS
It is vital that you understand your compensation package and save any documentation you need to understand your benefits after you are laid off. Some things that are especially important are your health insurance and dental benefits, Dobroski said.
In the last few weeks of employment, Lupine has been making sure she has enough prescriptions for the last few months, as she has Type 1 diabetes.
“I don’t want to put myself in a situation where I don’t have enough insulin or contact lenses or things to live in a healthy way while I’m in this transition period,” Lupine said.
NETWORK
Reaching out to your professional and personal network can be helpful, and it’s useful to give some guidance to friends and colleagues who want to help, Lyons said.
Examples include asking them to write recommendations for you on LinkedIn, recommend you for a job or invite you to a free conference.
SHARE YOUR EXPERIENCE
Losing your job is difficult to talk about, and you should only share it if you feel comfortable. But sharing can help you by allowing you to lean on your support system.
When Lupine found out she was missing, she was texting a good friend of hers who quickly made her feel better by understanding her way of dealing with hard things: humor.
REQUEST FOR DISMISSAL
Applying for unemployment is an option that everyone should use, Lyons said. While your unemployment benefit may not be as much as your salary, it can help you stay afloat for a while.
“Companies you worked for are required to pay state and federal tax that provide unemployment benefits,” Lyons said. “Don’t be shy to collect it.”
The Department of Labor has tips for applying for unemployment.
CONSIDER A TEMPORARY JOB
A temporary job is a good option if you can’t afford to be out of work, Dobroski said. Lyons also recommends temporary jobs and says you should include them on your resume if they demonstrate skills that fit the full-time job you’re looking for, such as leadership or organizational skills.
“It shows that you have grit, that you’re willing to work hard and take care of your responsibilities,” she said.
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A version of this story was moved in March 2023. This story has been updated with new details and quotes.
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The Associated Press receives support from the Charles Schwab Foundation for educational and explanatory reporting to improve financial literacy. The independent foundation is separate from Charles Schwab and Co. Inc. The AP is solely responsible for its journalism.
