8 Tips for Unemployment Survival
Unemployment is a staggering reality for many young professionals like Senta Schreiber of Chicago. If you’ve been laid off or fired from your job, the inability to work can have a debilitating effect on your finances and your psyche. However with a little preparation and a positive attitude, you can survive unemployment. “I was laid off in December of 2008,” says Schreiber, “but since then I have become a stronger person.” This article covers tips to help you gain a better perspective and survive unemployment, just like Schreiber has.
Unemployment survival tip #1: Leave with dignity
You might find it difficult to control your emotions when you receive news that you’ve been laid off or, worse yet, fired from your job. You might feel shocked, angry, relieved or a combination of all three. No matter how you feel, remember to maintain your composure. Whether you are asked to leave that day or given a few weeks to finish your duties, avoid gossip or criticism of your employer around your fellow employees. Clean out your work space quickly and quietly and complete all unfinished projects. Although it’s difficult to bear in the heat of the moment, it’s important to remain professional – especially if there’s a severance package at stake or the possibility that you may be re-hired at some point down the road.
Unemployment survival tip #2: Consider your severance package
You might be eligible for severance as outlined in your company’s policy or your hiring agreement. Before you sign anything, take time to examine any document placed in front of you. Read it carefully and don’t hesitate to ask questions. If you carefully approach this conversation and gauge your employer’s reaction, you might be able to negotiate certain terms of your severance agreement. For example, if there’s a project you’d like to finish or you’re about to reach the end of an anniversary year, you might consider asking to extend your termination date so you have better material for your resume.
If you aren’t completely comfortable with certain terms in your agreement or suspect you’re a victim of discrimination, it doesn’t hurt to seek an attorney’s guidance. Sadly, wrongful termination does occur, so it’s important to know your rights in these situations.
Unemployment survival tip #3: Look into all health insurance options
If you’re enrolled in your employer’s group health insurance, immediately ask for information regarding health insurance continuation, or COBRA. COBRA allows you to receive your employer’s health insurance benefits for 18 months after termination as long as you pay up to 102 percent of the premium on time each month. Terminated employees, their spouses, and dependents are eligible for COBRA as long as the termination didn’t occur as a result of gross misconduct.
If you opt not to participate in COBRA, carefully research available individual insurance options like Monika Zarow did. “You can find cheaper individual plans,” says Zarow, a temporary employee from Chicago. “But keep in mind that means you’ll have a higher deductible.” Visit healthinsurancesort.com to search for available plans.
Unemployment survival tip #4: Determine how you’ll earn income between jobs
While this article will later cover job search strategy, it’s important to understand that it might take longer than you expect to find full-time employment. This is why it’s important to plan how you’ll financially survive unemployment in the meantime.
If you’ve been laid off, you’re probably eligible to apply for unemployment insurance. While unemployment insurance normally offers only a portion of your full-time salary, it will certainly help cover some of your expenses. Visit the U.S. Department of Labor’s website to locate unemployment insurance information for your state.
You might also want to look into part- or full-time temporary employment. Temping not only offers a paycheck, but also allows you to keep your skills fresh and grow your network. There’s also the possibility of permanent employment in some temporary situations. As a temp, you also get a chance to test the company out while they test you. Depending upon your state’s unemployment insurance rules, you may be able to temp part-time while still receiving compensation from your state.
Finally, you might want to use this opportunity to test out your entrepreneurial ideas. Now is as good a time as ever to try freelancing or starting your own business. See WhatCollegeForgot’s How Do I Start A Business for tips.
Unemployment survival tip #5: Watch your budget
If sticking to a budget hasn’t been your forte in the past, review How to Budget Money – 5 Simple Budgeting Steps for Recent Grads and find ways to trim your spending. This can be especially difficult for young people, as the abundance of free time combined with the need to socialize makes those bar crawls and restaurant outings more tempting than ever before. Try to cut back your spending in these areas, but don’t completely ban the things you enjoy. “You may be strapped for cash, but do something you like, even if it is as simple as going to a matinee movie,” says Schreiber. Any hobbies, sports or other interests you’ve invested in will help lift your mood as you’re trying to survive unemployment.
Unemployment survival tip #6: Prepare for the job hunt
Wake up, shower and dress each day so you can tackle your new full-time job– finding employment! Brush up on how to write a resume, create a cover letter, and prepare for a job interview.
Networking is especially important at this stage. “Networking may not immediately get you a job, but you will learn from other people, and their positivity is infectious,” says Schreiber, a self-confessed former introvert who is now a master networker. Seek out networking organizations in your area and try to attend at least one event per week. Even if you don’t meet anyone who can provide leads, just the fact that you’re socializing will help you survive unemployment.
Unemployment survival tip #7: Be prepared to explain why you aren’t working
Most experts agree that there’s no need to include your unemployed status in your cover letter or resume. However, if you’re asked why you left your last job on an employment application or during an interview, be honest and brief. In the case of a layoff, let the interviewer know you were downsized along with other talented workers at your firm. Acknowledge that your supervisor made a tough business decision, and be prepared to describe what you’ve been doing in the meantime to keep your professional skills sharp.
If you were fired from your job, you have a slightly larger challenge ahead of you. However, it’s a challenge you can overcome if you don’t let the stigma of being fired affect your attitude. First, know that being fired is not the death knell of your entire career. Read We Got Fired!…And It’s the Best Thing That Ever Happened to Us to gain inspiration from some famous and successful folks who’ve experienced being terminated.
Next, prepare an explanation of no more than two minutes as to why you were fired. Depending upon the circumstances, explain that you were fired from your job because your skills didn’t fit the position, you didn’t fit into the company’s culture, or you didn’t see eye to eye with your boss. Then describe how your skills fit into this position, the type of culture you are seeking, or the positive relationships you had with past employers. Ultimately, you want to succinctly explain what you learned from being terminated and avoid being critical of your former employer.
Unemployment survival tip #8: Stay healthy and positive
This might be easier said than done, but being kind to yourself during this time is crucial to surviving unemployment and ultimately find a new job. Take the appropriate amount of time to grieve for your old job, but then move on as quickly as possible. Eat right, exercise and surround yourself with positive people. These things not only help your mood, but also help you present a better image during interviews.
Know that by following these tips you’re making progress, even if it’s not immediately visible. “From February 2009 through December 2009, I maybe had three or four in-person interviews at various companies, and maybe a dozen interviews with recruiters,” says Schreiber. “I was getting frustrated, but I kept moving, figuring something better would come along. Remember to keep your options open, and that there is hope!”
By: Tanya Stanfield
4-29-2010
Tanya Rose Stanfield continues to navigate the post-college world in Chicago six years after graduating from the University of Wisconsin. She's a freelance writer and marketing communication expert who writes for athleticgals.com and keystoneclick.com.
