Surviving a Layoff in Today’s Recession of the U.S. Economy

There are two big fears for most Americans when in the midst of a recession like the U.S. economy is experiencing. One fear is the rising prices and the other is the threat of a layoff. A layoff is one of life’s bad experiences and is quite common in a recession because business slows. You should know how to deal with it. Here are some things to consider:

Make sure you get all of your information from human resources (HR). They should let you know how much severance pay you will get after the layoff. They should advise you of when the last day of your healthcare coverage is and when you will be eligible for continuation coverage known as COBRA.

Take on part-time work while looking for other employment. Because it is a recession, you can be reasonably certain that you will have a tough time finding the same type of job after a layoff. Some people will enroll at temporary agencies to get assigned on an as-needed basis. Some do work that no one else wants like ringing the bell at a Salvation Army donation stop. Some take on work as a security guard. There are jobs that are probably not your career dream but they can get you through.

Do freelance work. Freelance work is pretty much recession-proof. You won’t get rich at it but it could make a big difference when it comes to getting through these tough times. See if there is something that you could do well with freelancing like writing, computer programming, or language translations. Graphic artists find freelancing opportunities as well.

Don’t run up your credit cards. If you heavy in debt at the time of your layoff, just write your creditors and explain the situation. They won’t like it but what can you do? However once you tell them you are having problems, don’t continue to run up charges. Just hold tight a little and see if you can get new employment. Remember that the credit card companies usually do not charge you off until you have not made a payment in 150-180 days.

Have garage and yard sales. You will be simply amazed at what some people will buy. Put your unwanted items for sale. Every penny helps after you have been the victim of a layoff in this recession.

Take care of your mental condition. The danger for one who has just been through a layoff is that they cannot deal with the loss of identity. And then the news of the recession is gloomy so they lose all hope too. People identify themselves with others by what they do. Talk to a minister or other counselor if you are having hopeless thoughts and getting crippled by depression.

Take a look at your 401K, stocks, and life insurance policies. If you have a whole life insurance policy, you might be able to take a low-interest loan out for the cash value built up in it. It might be just enough to get you through the recession and a layoff. You may have some stock you can cash in or a 401K plan with a significant cash value. Be careful of the tax implications however.