Have you noticed that reports of layoffs have jumped back into the news lately? And with that, there is also more uncertainty in the economy than we’ve seen for a while.

That can sometimes mean that the job security many of us had may be slipping. If you, a family member, or a friend are worried about the possibility of being laid off, there are proactive steps to take. And if the worst happens, knowing how to recover can make all the difference.
 

Preparing for the Possibility of Being Laid Off

While the prospect of layoffs is daunting, being prepared can help soften the blow. Here’s some steps you can take to help stay prepared:

1. Build Financial Resilience:

Start by creating an emergency fund that can cover 6 - 12 months of your living expenses. This financial cushion can alleviate stress while you plan your next steps. Also keep credit card and other high-interest debt as low as possible.

2. Review Your Spending

Take a look at your monthly spending with a more cautious eye. Is this something I really need, or can I live without it? Are there monthly subscriptions that I can cut? This type of review is always a good practice, but knowing what the essentials are and reducing expenses can help you save more.

3. Enhance Your Skill Set:

Stay competitive in the job market by upskilling or reskilling where needed. There is no shortage of online platforms in many fields available to help. Certifications in emerging industries or technologies can be especially valuable.

4. Strengthen Your Network:

Professional relationships are invaluable during times of transition. Attend industry events, connect with former colleagues, and engage on platforms like LinkedIn. A strong network can open doors to new opportunities.

5. Organize Important Documents:

Before access is potentially restricted, gather copies of performance reviews, work samples, and any other relevant documentation from your current employer. These can be useful for job applications or interviews.

6. Stay Informed:

Keep an eye on industry trends and your company’s financial health. Early warning signs of layoffs might include budget cuts, hiring freezes, or changes in leadership.

Steps to Take If You’ve Been Laid Off

A layoff can be an emotional and financial shock, but there are concrete steps to regain stability:

1.Take Time to Process:

It’s normal to feel a range of emotions—anger, sadness, frustration. Allow yourself to grieve but avoid making impulsive decisions. Rely on a support system of family and friends to help you through this period.

2. Understand Your Rights and Benefits

Carefully review your severance or exit package and any benefits, such as health insurance extensions or outplacement services. File for unemployment benefits promptly and familiarize yourself with local resources.

3. Reassess Finances:

If you don’t already have a Financial Advisor, this is an ideal time to find a professional advisor who you can rely on to guide you through the many decisions you will face. You may find one through your employer or a referral from a colleague or friend.

4. Re-evaluate Your Career Path:

Use this time as an opportunity to reflect on your long-term goals. Update your resume and LinkedIn profile, highlighting your achievements. Explore temporary or freelance opportunities as a way to stay active and maintain income.

5. Focus on Personal Growth:

Consider this a chance for reinvention. Whether it’s pursuing a passion project, starting a side hustle, or dedicating time to family, use this transition to explore new possibilities.

 

Conclusion

While layoffs can feel overwhelming, they don’t have to define your career or future. By preparing ahead of time and taking proactive steps after a layoff, individuals can navigate this challenging period with resilience and determination. Remember, some of the most inspiring success stories begin with an unexpected change.

Your journey won’t end there – it will just represent the beginning of a new chapter.

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Investment advice offered through OneDigital Investment Advisors LLC.