The unemployment rate tends to rise in January, which is historically one of the busiest months for layoffs.
Anchalee Phanmaha/Getty’s photo
hide captions
switch captions
Anchalee Phanmaha/Getty’s photo
The unemployment rate tends to rise in January, which is historically one of the busiest months for layoffs.
Anchalee Phanmaha/Getty’s photo
January has historically been the busiest month for job cuts.
First month of the year ““That’s when most companies are restructuring, reorganizing and reorienting,” said Sarah Rodehorst, co-founder of Onwards HR, which helps companies implement layoffs. in 2023.
Goldman Sachs CEO David Solomon announced widespread layoffs at the investment bank in the first half of January, citing slowing economic activity.
After a year of rising inflation and a series of big rate hikes, companies are worried about the possibility of a recession. One in three companies expect to lay off 30% or more of their workforce by 2023, according to a December survey of 1,000 business leaders. Resume Generator.
The cuts so far have cut across industries. Morgan Stanley, Amazon, Netflix, Cisco, CNN and dozens of other companies have all laid off employees this year. Meta, the parent company of Facebook, has cut its workforce by 13%. Despite those cuts, The labor market remains stable, as U.S. employers are continually adding more jobs than they can fill. But that dynamic could change in 2023.
In December, Fed officials predicted unemployment rate will reach 4.6% at the end of 2023, up from 3.7% in November.
While that’s still an historic low, it’s an increase that will affect hundreds of thousands of workers.
So what should you do if you get cut off? Here are some tips:
Share news far and wide
Losing a job can be a disaster, and it can be a while before you’re ready to tell your friends, family, or people in your professional network, let alone the world. But sharing the news widely — on social media — can go a long way to reaching the next opportunity.
Onwards HR’s Rodehorst said: “One of the things we’re looking for as one of the fastest ways to find your next job is to post that you’ve just been fired by a really popular company and Your skills are in high demand.” “We’ve talked to recruiters and they’re looking specifically at the people who are making those posts and especially how they handle and present themselves on those posts. If they respect the company could have fired them, it just shows a sense of character.”
Apply for unemployment as soon as possible
Apply for unemployment benefits immediately as it can take several weeks to start receiving benefits after filing your claim.
According to Bankrate, 56% of Americans can’t afford the unexpected $1,000 bill from their savings, and if the job search drags on, unemployment benefits will keep you going.
Benefits vary from state to state. You will need to check with your state unemployment office to determine eligibility. This is a contact list by state.
Ask your creditors for a break, no matter how short the time
If you are at risk of being fired, Trying to wipe off your debt should take the back seat.
“You really want to reduce or pause your debt payments so you can save cash because when you’re laid off, cash is king,” says Michelle Singletary, personal finance columnist for the Washington Post. “Make minimum payments, but you want to be prepared for the possibility that those payments may need to stop while you focus on essentials.”
To avoid high interest rates or fees or lower your credit score due to late payments, it’s essential to call your lender to explain your situation.
“The one thing that a lot of people don’t do, which is really surprising and I hear this from lenders, is they don’t call. They feel embarrassed,” Singletary said. “Most of the time the lender will work with you. Maybe you can pay off part of the home loan.”
Have you taken out a 401(k) loan yet?
It’s not uncommon for workers to borrow money from their 401(k) account to help cover a large expense, such as a home deposit or college tuition, and then pay it back themselves, plus with interest, over time. But those terms often depend on keeping your job.
“You want to ask about how to handle a loan when you are laid off,” says Tammy Lally, a financial coach and financial planner. “Some employers will give you a grace period to pay the balance. And after that time, if the balance is not paid in full, it will be considered a withdrawal and will be taxed in full. “
Schedule your doctor’s appointments as soon as possible
If you lose your job, you’ll also lose your included health insurance, which is why it’s so important to schedule doctor appointments you’ve postponed if you feel like you’re about to be laid off.
“Some employers will subsidize your health care for a certain period of time, and others will stop paying on your last day of employment,” Lally says. “You may also be offered COBRA, which is just a continuation of your healthcare and you’ll want to check out Healthcare.gov to compare it to other plans on the market.”
Cut yourself some slack
For better or worse, our identities are often tied to our jobs. Suddenly losing it, along with its meaning, purpose, or structure, can make you feel like you’ve lost a part of yourself.
“We should allow people to grieve when they lose their jobs,” Singletary said. “There are organizations where you can go online and get a free consultation, and when you lose your job your coverage may not be canceled immediately and you may want to see if you can book an appointment. make an appointment with a mental health provider.”
During this process, a key figure provides a certain amount of comfort, says Rodehorst.
According to the US Bureau of Labor Statistics, 66% of workers find new jobs in less than 15 weeks.”
