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How to Get Back On Your Feet After a Layoff

If you live and work in the USA and haven't been laid off from a job yet, consider yourself very lucky.  

According to the U.S. Department of Labor's Bureau of Labor Statistics, 851,997 Americans lost their jobs in 2005 and the numbers have not gone down since then. The politicians may argue whether the economy is in a retreat or a recession, but the reality is that jobs are just not as secure as they used to be no matter where you work.

The majority of the layoffs in the US are hitting the manufacturing, construction and information technology industries, but other sectors are not immune.  The Florida-based Winn Dixie grocery store chain laid off 22,000 people; Boeing handed out more than 9,000 pink slips; and Verizon started the process of laying off more than 7,000 workers shortly after acquiring MCI. Problems with ARM mortgages and the housing market are hitting financial institutions hard. Citigroup alone added tens of thousands to the projected jobless statistics during 2007.

Add the 56,310 jobs pretty much permanently lost as a result of structural damage caused by Hurricanes Katrina, floods in the Midwest, fires in Florida and California... and it's easy to see why the national unemployment rate has climbed close to 5 percent (as of November 2007, US Department of Labor, Bureau of Labor Statistics).

The picture may look bleak, but many of the people who are "downsized" do find other jobs. There's no reason you can't be one of them.

So how do you get back on your feet after a layoff?  

There are a number of steps you'll need to take.  "First and foremost, don't panic!  You may have lost your job, but not your ability to work.  Something bigger and better will come along soon," says Vernon Pursley of www.staffkit.com, a Web-based Computer Training service.

Here are some of the most important things Pursley's organization recommends people do to get back on their feet quickly:

1) Organize your finances.

Take out a piece of paper and make two columns.  On one side list your necessities, like the mortgage, food, gas, utilities and daycare.  On the other, your luxuries, like that daily cup of Starbucks coffee, your gym membership and movie money. You'll likely find you can save a lot of money by cutting out the extras for a while.

2) Update your resume.

A good resume can often mean the difference between being granted an interview or not and getting the interview is the foot in the door you need to get a new position. Take the time to make yours really shine before sending it out to represent you in the business world.  Be sure to highlight all the skills and responsibilities you had on your last job. Definitely make a point of asking someone you know who has experience with hiring people to review the document before you send it anywhere.

3) Activate your network.

Don't be ashamed that you've been laid off. In this economy, it's happening to the best people. Tell everyone you can think of that you're looking for work. Maybe a friend, relative or a neighbor knows of an employer looking for someone with your skill set. Many employers are willing to offer a bonus to a current employee who recommends a good person for an empty position. You may be doing your network a favor by letting them know you're available.

4) Go back to school.

Take advantage of the time off to better yourself both professionally and personally. Especially if the job you lost was in a high layoff sector, you can go back to school to learn the skills you'd need to make the transition to a higher paying professional position. Many state unemployment offices will work with you and may even provide funding to retrain you for a better career.

If you are still employed, but worried about your job, there are steps to take before you get laid off to make life easier. Paying off credit card debt is priority number one. Make sure to send in more than the minimum payment. Even an extra ten dollars a month can cut your fees dramatically and get those cards paid faster. While you're at it, start putting aside some rainy day money in a savings account or CD. Small deposits add up quickly and can be a life saver if you do have to face a layoff.

If your career is in one of the depressed sectors, you may also want to consider training for a different field before the ax hits your department. Being proactive about your job choices while you are in control can bring hefty dividends if your time comes to hit the streets looking for work.

The extra benefit of job training while you are working is that many employers will actually pay for it - and you may wind up getting a promotion instead of a pink slip.

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