Unemployment tends to rise in January, historically one of the busiest months for layoffs.
Anchalee Phanmaha/Getty Images
hide caption
toggle caption
Anchalee Phanmaha/Getty Images
Unemployment tends to rise in January, historically one of the busiest months for layoffs.
Anchalee Phanmaha/Getty Images
January is historically the busiest month in terms of job cuts.
The first month of the year “that’s when most companies restructure, reorganize and set direction,” says Sarah Rodehorst, co-founder of Onwards HR, which helps companies with layoffs, adding that technology , healthcare, banking and finance are likely to suffer the biggest cuts. .in 2023.
Already, Goldman Sachs CEO David Solomon announced massive 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 sharp interest rate hikes, businesses fear the possibility of an impending recession. One in three companies plan to lay off 30% or more of their workforce in 2023, according to a December survey of 1,000 business leaders by resume builder.
So far, the cuts have affected all industries. Morgan Stanley, Amazon, Netflix, Cisco, CNN and dozens of other companies have all laid off staff this year. Meta, the parent company of Facebook, has reduced its workforce by 13%. Despite these cuts, the the labor market remains resilient, because American employers have consistently created more jobs than there are workers to fill them. But this dynamic could change in 2023.
In December, Fed officials predicted the unemployment rate would reach 4.6% end of 2023, compared to 3.7% in November.
Although this is still historically low, it is an increase that would nevertheless have an impact on hundreds of thousands of workers.
So what should you do if you are released? Here are a few tips:
Share the news far and wide
Losing a job can be devastating and it may take a while before you are ready to tell your friends, family or members of your professional network, leave the world alone. But sharing the news on a large scale – on social media – can go a long way toward seizing that next opportunity.
“One of the things we find is that one of the fastest ways to find your next job is to post that you just got fired from a very well-known company and your skills are in demand,” Rodehorst says of ‘Onwards HR. “We’ve spoken to recruiters and they’re looking specifically for people who are in those roles and more importantly how they manage and present themselves on those roles. If they’re respectful to the company that may have fired them, that just shows a sense of character.
Submit your unemployment file as soon as possible
File for unemployment immediately as it may take a few weeks to start receiving benefits after filing a claim.
According to Bankrate, 56% of Americans can’t cover an unexpected $1,000 bill with their savings, and if the job search drags on, unemployment benefits will help you stay afloat.
Benefits vary from state to state. You will need to check with your state unemployment office to determine eligibility. Here is a list of contacts by state.
Ask your creditors for a break, no matter how brief
If you are at risk of being fired, trying to clear your debt should take a back seat.
“You actually want to slow down or pause your debt repayment so you can save money, because when you’re laid off, cash is king,” says Michelle Singletary, personal finance columnist for The Washington Post. . “Make the minimum payments, but you want to be prepared for the possibility that those payments have to stop while you focus on the necessities.”
To avoid high interest rates or fees or a drop in your credit score for late payment, it is essential to call your lenders to explain your situation.
“One thing a lot of people don’t do, which is really surprising and I hear that from lenders, is they don’t call. They feel embarrassed,” Singletary says. “Most of the time the lender will work with you. You may be able to make partial payment with a home loan.”
Have you taken out a 401(k) loan?
It’s not uncommon for workers to borrow money from their 401(k) accounts to cover a big expense, like a down payment for a house or college tuition, and then pay it back, plus interest, over time. time. But these conditions often depend on keeping your job.
“You want to know how the loan will be handled when you’re laid off,” says financial counselor and financial planner Tammy Lally. “Some employers will give you a grace period to pay the balance. And after that time, if the balance is not paid back, it will be considered a withdrawal and it will be fully taxed.”
Schedule those doctor appointments as soon as possible
If you lose your job, you’ll also lose the health insurance that comes with it, which is why it’s important to schedule any doctor’s appointments you’ve postponed if you feel a layoff is imminent. .
“Some employers will subsidize your health care for a while and some will stop subsidizing it on the last day of your job,” says Lally. “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 for worse, our identities are often tied to our work. Suddenly losing it, and the meaning, purpose, or structure it provided, can feel like losing a part of yourself.
“We should allow people to mourn the loss of their jobs,” Singletary says. “There are organizations where you can go online and get free advice, and when you lose your job your insurance may not be canceled immediately and you may want to see if you can get an appointment with a provider. mental health.”
Throughout this process, a key figure should provide some solace, Rodehorst says.
According to the US Bureau of Labor Statistics, 66% of workers find new jobs in less than 15 weeks.”
0 Comments